Main exporters to China, the likes of Australia, Japan, Brazil, South Korea and Malaysia, will surely take a hard hit. The construction machine has gone past its overheating point and has to slow down. It will therefore buy less of the raw materials that it once gobbled up in big numbers. With the devaluation, it will also be more expensive for China, thus adding more pressure to import less.
The Chinese government had been trying hard to fix their woes by way of monetary and fiscal policy; the most recent is the decision to devalue the Yuan. And every economy strongly linked to China will take a hit.
And the Philippines? Well, no matter how much we throw mud at the balding President, we have to admit, this one knows his job. There might be some stroke of luck in there where our economy currently stands, but undeniably our strong economic fundamentals is also a result of good leadership. Our well-known fiscal and monetary prudence did not happen by accident.
Thanks as well to our solid BPO industry, and the forever heroes that are the OFWs. Also a much deserved thanks to Filipinos who invest in the Philippines. Our stocks and bonds are only 10% foreign-owned. When the going gets tough, foreign investors cash in and run. But even if they do as in the case now, 10% of them is not enough to make the edifice crumble.
I hope I have whetted your appetite about this issue. I will not repeat what has already been written, and might as well let you read it straight from the Chicago Tribune (http://www.chicagotribune.com/news/sns-wp-blm-news-bc-philippines24-20150824-story.html?ref=yfp).
As a parting shot I wish to hammer this one home: We are in good footing today despite the financial chaos elsewhere because Filipinos (incl. the OFWs) invest in the Philippines, and the bald leader has the ability to see the big picture; the acumen to put society first before politics.
Finally, the Filipino as a citizen has evolved. We keep our money here because we believe in what we have become; a new version we could aptly call Filipino 3.0. This is the version that holds real our ability to rise and rise again, until lambs become lions.
Pic from vox.com
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