Looking to Invest in the Philippines Get an Investment Risk Analysis Today



Research and Markets (http://www.researchandmarkets.com/reports/c26309) has announced the addition of Investment Risk Analysis of the Philippines to their offering

The Philippine peso is expected to depreciate by about 10 percent against the dollar in 2005 while the equity market weakens and bond spreads widen. Deteriorating relations with the U.S. and the intensification of Muslim insurgencies make geopolitical risk high. Weak governance and questionable legitimacy elevate political risk. Increasing social instability, driven by tight fiscal policy, make political and social risks high.

Economic growth risk is high. The continued rise of international oil prices will push inflation higher and economic growth lower in 2005. Economic growth will be further undermined by increasing political and social instability, declining real incomes and rising unemployment.

Fiscal risk is high. The Philippines is in a debt trap, the most probable exit from which is default. Balance of payment risk is moderate. The contraction of the current account surplus in 2005, driven by much weaker export growth, will drain foreign exchange reserves. The Philippines very limited access to private external capital suggests that the Arroyo government will be forced to turn to the IMF for credit in 2005 to avoid a sharp decline in reserves and a balance of payments crisis. Investment risk in the Philippines is high and is expected to remain high in 2005.

For more information visit http://www.researchandmarkets.com/reports/c26309

Laura Wood
Senior Manager
Research and Markets
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Looking to Invest in the Philippines Get an Investment Risk Analysis Today