The Philippines Debt Problem, Explained
ฝัง
- เผยแพร่เมื่อ 16 ก.ค. 2024
- The Philippines' debt burden is often talked about - terrorized with fear and driven by government spending. Is it though really a problem?
Narrated by Tom McKay
Video Edited by iyanbriandi
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Timestamp(s):
0:00 The Rising Debt
0:35 The "Build, Build, Build" Issue
2:02 Debt-To-GDP Ratio
4:26 The Continous Spending
6:02 Foreign Reserves
7:20 The Debt Issue
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Brought to you by the Behind Asian Team.
The Philippines indeed has a large foreign and national debt, but so is any other nation. What do you think about this issue? Let us know down below!
You are wrong and biased
You should do a video on Singapore’s Debt . Over 100% of its gdp .
It's not really a major issue. Filipino wokes are just spreading paranoia and are overexaggerating. The country's financial credit score is still positive and its foreign exchange reserves has already exceeded the 100B-mark, which is among the highest in Asia. Not to mention, the country's External Debt to GDP ratio is the lowest in ASEAN-6.
I don't get why you created a video about the Philippines' "debt problem" when our neighbors literally have way higher debts and external debt-to-GDP ratios
@@apinezstats2237 but Indonesia got lots of resources, but Philipine got more poor people than resources. That's the difference, but both are best for corruption .
I can't believe people are really suggesting that we can just "print" money to cover our domestic debt. Did everyone forget that this is inflationary?
what do you expect? most Filipinos don't even understand how the bank works.
it's even prevalent among the poor
this sentiment of.
" bakit di nalang gumawa ng maraming pera para wala na mahirap "
wth
We'll ended up like Sri Lanka
They don't know how money works.
Lol
Because a lot of filipino dont know how money works😔
This strategy is undoublty risky, although the fact that most debt used is from National Debt is a bit of relief. Well, I do hope Philippines can pay and invest more on self sufficient businesses and cargo transportations so that when worldwide inflation strikes again, we won't get affected heavily by ballooning prices.
Somewhere out there was a research report which stated that countries who invested heavily in infrastructure had a much bigger chance of growing by 5% in GDP. In fact, it was the BBB spending which pushed us through the most trying times of the pandemic. When it was already possible to open work for the projects the government gave the signal to return to work and this arrested the slide of the economy. 2 million jobs is really not a small number in our country.
yES THE PHILLIPINES INVESTED IN BULD BUILD BUILD MAINLY INVESTED IN TRANSPORTATION SECTOR TO IMPROVE FOOD SELF SUFFIENCY IN THE END, NOW THE GOVERNMENT WILL FOCUS ON AGRI SECTOR SELF SUFFICIENCY ALONG WITH INTER ISLAND CONNECTIVITY PROJECT, IRRIGATION AND AGRI SCIENCE PROJECT TO ARREST IMPENDING RECESSION IN THE FUTURE.
It is kind of disappointing that many of our countrymen ridicule and criticize the Government without putting any effort in learning the reasons behind on why the Government did this and that
@@sran5947 Its true that infrastructure help speed up economic growth. But it should be done slowly, not 180 billion at one go in such short period of time. Maybe government can spend 20 billion first and 5 years later they spend another 20 billion. 180 billion debt when the government tax revenue is not even nearly that big sounds rather scary.
@@secrets.295 , who said it's in 1 go? This plan is multi year and multi administration in scope. The subway alone will take another 5 years before completion, or year 2027. That amount is the projected total expenditure for the infra which will be built all through the years. This include all the ongoing long term projects like the railway going North and South. The difference is that the projects move along at a much faster pace than before. Besides, projection is only max 6% of GDP/year or roughly some 20 billion dollars/year. 6 years is only 120 billion, not 180 B. Our GDP 2021 is 393 billion and expected to reach at least 418 billion in 2022. Meanwhile, in the past 30 years before PRRD, we only spent max 2%/year for infra. Also, as per Ben Diokno of DOF, there is really nothing to worry because we can pay as long as the economy grows by 6~7%/year. My worry, therefore, is if we cannot unite as a nation and the things that happened during the Sr Marcos years of the late 70s early 80's, will happen again...let's not allow this to happen.
Diokno is right to have a contrarian view about raising taxes since aside from the fact that we already have one of the highest corporate taxes in the region it will further erode our competitiveness in attracting much needed FDIs which has always been lagging compared to our neighbors. Instead, the government should focus on improving the ease of doing business and removing further barriers to FDIs to stimulate more competition and help bring the price of goods and services in tune with the people's local wages.
some things should be taxed more, some should be taxed less and some should maintain it.
That's the thing most people especially pinoys don't understand, *YOU COULD STRIKE A BALANCE* but the prevailing mentality for the masses especially the ones being conned by the liberals are waaaaayyy too biased on one end specifically them wanting *ALL* taxes to be lowered and also wanting basic income to increase while not realizing that doing so will doom the entire country.
The main problem of the Philippines that Provincial to Provincial travel isnt exactly praise worthy, Goods and commodities in transit usually is delayed or is expensive, specially on part where island to island travel is required.. no the Government is Building Highways and Bridges, and Freight Trains, trying to connect every province and even island on that matter.. mass transit that most benefited by the production businesses. anyway lets wait and see... Remember, Philippines is an Archipelago, that itself is already a strain to the economy....
That didn’t stop Indonesia and Japan from growing incredibly. It is both weakness and a strength. Just have to develop it properly
Hehe panguil and roma point bridges has started construct.2025 panay guimaras negros bridges. Cavite bataan bridges no date yet
@@jasmikko
indonesia has one thing that we don't.
*OIL*
And a shhttt on of it.
Why do you think Imperial japan before WW2 was so eager to invade it and inevitably was one of the reasons why the Philippines was invaded as well? Or that the Dutch didn't let go of Indonesia after WW2 as well and even fought a bitter war against them?
It was because Indonesia had a shhttt ton of oil especially during that time and is why, like I said, the Philippines was invaded because it was their way to prevent America from attacking their invasion of Indonesia suddenly from their bases in the Philippines.
@@dickmelsonlupot7697 oil revenue minus the cost of production only accounts to less than one percent of Indonesia’s economy. So I don’t think it is a main contributing factor why Indonesia has much better transportation and telecom infrastructure than the Philippines.
@@jasmikko
It actually does though especially back then when they had a shhtt ton of money and stuff left over from the Dutch.
plus unlike Indonesia, the Philippines was a victim of dumb meddling by the Americans both by the US themselves and by the IMF who inadvertently caused the sudden economic reform that Ferdinand Marcos was forced to do which then led to the degradation of the Philippine economy.
As for Indonesia's transportation, it's mostly because of the Dutch and because unlike the PH who is divided into 3 major parts, much of Indonesia is centered around Java and is where you'll see much of the "improvement" you see while if you go elsewhere in the country, you'll find that it's no different to the Philippines in terms of transportation and telecom.
The only thing that you'll need to worry are external debt. This is because external debt can pressure the borrower to pay with high interest. For example Sri Lanka have high external debt.
yeh but the goverment was more corrupt then philippines
I bet the percentage of the external debt of the overall debt of the philippines is much higher.
@@terrance08 you are wrong. I dont know how did Philippines managed to do it but their external debt is too low. you can check the data online or request it.
@@terrance08 its relatively low.. its actually less than 20,25 percent of the GDP Nominal....
@@terrance08 the vid itself said that of all the outstanding debt the external debt was roughly 30%. So it is relatively low not to mention that the Central Bank has a huge foreign reserve that it can leverage to manage inflation
Last 2 years has increased this problem a lot. Now inflation and Ukraine invasion has even worsened it. Many nations will default if this problem is not solved
Very informative video as usual 😁 This video provided much needed context and data needed to understand the current economy of the Philippines. I really hope my fellow countrymen stumble upon this video so that they can have a detailed understanding of our current situation rather than believe misleading headlines they found on the social media. Keep up the good work! 🇵🇭👏
They always think everything is free and just because the goverment is building something, it is already the best solution.
social media?
Bruhh, it's more common in mainstream media especially ones made by obvious anti-government, anti-Duterte and currently anti-Marcos "journalists" who spin the situation and make it look like it's a bad thing when it isn't.
The biggest sinners of these, that I know of are:
- Rappler
- The Philippine Inquirer
- Manila Bulletin
- ABS-CBN
- GMA
and many others
Why did the Philippines not stop its massive infra projects?
To grow the Country's GDP, spur business activities, provide jobs and resolve the Country's infra problems like traffic congestion which are holding down the economic growth of the Philippines.
Because of traffic problems in Metro Manila alone, the Philippines is already losing 2.B dollars every month in MM alone.
So, it is really necessary for the Government huge resources to ease the traffic in MM and other urban areas like Cebu, Davao, Angeles City-Mabalacat-San Fernando City corridor.
If the BBB projects could help ease traffic congestion by 50%, the economic benefits would be enough to grow the GDP by 1-2% or even higher.
The traffic problem in Philippines is the #1 reason Philippines won't be 1st world anytime soon. As soon as they build massive transpo infrastructure the stock of their economy would increase. Unfortunately that issue can't be solved instantly and even if they did pass legislation to address it, it would still be years away from actually happening.
@@EpsteinsRope We need sanctions on how many automobiles can be owned by people. Or by increasing taxes on the cars.
@@aurelian2668 Regulation on vehicles won't help unfortunately. Your tiny island has over 100m people. That would only make the problem worse. Good public transportation infrastructure is the only way to fix it I'm afraid. Let's see if your new president can do anything productive.
@@EpsteinsRope nah man, infrastructure is good but wont matter if 70million people have easy access to buying cars. In phil its easy to buy motorcycles and cars.
@@aurelian2668 Bro I am a civil engineer, I literally build this stuff. I work for Amtrak (unfortunately). A vast metro system would definitely reduce congestion. People would take the metro if it meant a reduction in driving time and a modern and very large metro system would do that. Japan fixed the exact same issue with a robust metro. (They also tightened vehicle regulation) A better public transportation system = less buying cars. It's not mutually exclusive though, they should also tighten regulation on buying cars. Whatever the case, Philippines will never become 1st world until they stamp out corruption, unite the islands and invest in better transportation infrastructure. I've been all over the Philippine archipelago, and it's mainly Manila and the surrounding area that has an issue but given that the majority of the population lives there it needs to be done. I love the Philippines and want y'all to become the next Singapore, but without all the heavy top down laws.
Great explanation. Gonna recommend this vid to my friends and family! 👍
Very well said
you have forgotten to mention that OfW's are also the backbone of economy, it never stops.
ofw's making the billionaries richer at this point. What your saying is true though but at the end of the day us sending our relatives money are making them richer. The government needs to change something with the underpaid workers, too many billionaires in the Philippines just getting richer. Top 10 billionaires in the country are so rich that they actually put in $ instead of pesos
loved to see Asean Debt as a whole for comparison
OfW and BPO that's the Philippines edge over Sri-Lanka and you can add electronics. That's the reason why Diokno is confident.
Thanks for your review about the debt of the Philippines in internal and external borrowing money to the central banks. But I always look forward the betterment of the Philippines based on our hard working workers and contributions of Ofws remittances.
Ben DIOKNO explain this already but a lot of Filipinos don't understand
oww He also told the news yesterday that Marcos was just misunderstood about the inflation. Where in fact it was Marcos that seems not to now the real inflation status of the country.
@@chadzrgrc yes about the inflation rate
@@chadzrgrc what exactly did Marcos say? I have not been paying any attention to the ph news.
Is that so? The person asking talked about June inflation as a separate entity whereas Marcos gave the running inflation. What's the purpose of just talking about an isolated month inflation? Marcos was right.
The 63.5% 'debt to GDP' ratio is still manageable with the economy growing up to 6% to 7% annually. Compared that to Japan which is about 500% debt to GDP ratio that is scary. The increased 'debt to gdp' ratio after covid might be due to the reduced number of tourists visiting the country. Overseas workers remittances contributing about 10% of the GDP another factor that sustain the continuous growth.
We living abroad looking-in thanks to international vloggers, can see the big improvements, those grand projects, new building infrastructures.... Philippines is really a different country I left behind way back 1989. As I always mentioned in number of my comments, it was projected that the Philippines will be one of the 'Top Biggest Economy in the World' in about 2070's.... fingers crossed. As a country of happy people, we deserve it. Mabuhay!!
Agree with you 👍
here in malaysia we have 89% debt to GDP ratio.
@@karlomoonblade But Malaysia is a better country than my Philippines, economy wise.
@@xavierluna9194 but the debt trap is scary, amd based on such datas Malaysia is more likely to fall into such
Difference is that Japan actually earns revenue from their large and sophisticated export oriented economy unlike the Philippines which is still on going industrialization
Clearly expressed in a macroeconmic level. The hard question is somewhere in the micro economic level. Is the GDP growth equivalent to inclusive growth? Does it also benefit the majority of the population not just by big businesses? Does this debt go straight to projects or do some of it go to some questionable projects or pockets of some greedy men? These are questions that no one can answer with proof. No matter what the truth is, it will always be the citizens who will forever pay their taxes to settle this big debt of ours.
Ibon foundation did research that majority of the debt for "covid" was not spent for covid.
With scandals like Pharmally, i doubt they went to good hands
Its easy to predict micro if you know happen to Macro. And also your narrative is outdated " greedy men " ?
" pocket" ? still living in 2000-2015?.Thats me when i was not into politics. Todays problem is PH outdated economic policy, Inflations , Food security , Pandemic and Smugglers.
Says the man who profits from exploiting 4ps and Philhealth
The agricultural sector was just found out to hoard almost a fucking warehouse full of sugar and plants that are involved in sugar are closing so probably greedy men
That is why the Philippines need to recover not from just the Pandemic but also from the more than 3 decades of neglected duties of all levels of institutions from agricultural, energy, law enforcement and etc.
And I would bet the biggest game changer is when Philippines be self sufficient in agriculture
Self-sufficiency in agriculture is irrelevant in a modern economy. You're seeing the effects with onion and sugar prices. It would benefit the economy much more to import said products. Think about this - a low income earner cannot even buy 4 onions with his daily salary. What other country is like that?
From WorldEconomics, Philippines debt is #13 highest in the Asia-Pacific region (at 42%) - not very high
from worldpopulationreview - Philippines 2022 debt is 37% - not very high
Infrastructure projects are the best government debt spending for a country
Japan 236.14% 125,584,838
Venezuela 232.79% 29,266,991
Sudan 200.35%
Eritrea 187.09% 3,662,244
Greece 185.08% 10,316,637
Lebanon 171.11% 6,684,849
Italy 134.14% 60,262,770
Singapore 128.20% 5,943,546
Cape Verde 124.92% 567,678
Barbados 123.22% 288,023
Portugal 116.61% 10,140,570
Angola 113.55% 35,027,343
United States 108.80% 334,805,269
Bhutan 106.49% 787,941
Bahrain 101.64% 1,783,983
Zambia 99.73% 19,470,234
Belgium 97.71% 11,668,278
France 97.41% 65,584,518
Belize 96.31% 412,190
Mozambique 96.05% 33,089,461
Spain 95.54% 46,719,142
Jamaica 94.26% 2,985,094
Dominica 94.23% 72,344
Zimbabwe 93.22% 15,331,428
Cyprus 91.08% 1,223,387
Argentina 88.83% 46,010,234
Brazil 87.87% 215,353,593
Canada 87.16% 38,388,419
Sri Lanka 86.80% 21,575,842
Suriname 85.24% 596,831
Mauritius 84.62% 1,274,727
Egypt 84.21% 106,156,692
United Kingdom 83.85% 68,497,907
Gambia 82.97% 2,558,482
Republic of the Congo 81.70% 5,797,805
Antigua And Barbuda 81.25% 99,509
Maldives 78.81% 540,985
Montenegro 78.79% 627,950
Mongolia 78.47% 3,378,078
Jordan 78.02% 10,300,869
Pakistan 77.50% 229,488,994
Yemen 76.53% 31,154,867
India 75.11% 1,406,631,776
Aruba 72.89% 107,609
Sierra Leone 72.45% 8,306,436
Sao Tome And Principe 71.57% 227,679
El Salvador 71.29% 6,550,389
Croatia 71.08% 4,059,286
Austria 70.56% 9,066,710
Tunisia 68.97% 12,046,656
Saint Vincent And the Grenadines 68.12% 111,551
Albania 67.28% 2,866,374
Guinea Bissau 66.45% 2,063,367
Iceland 66.25% 345,393
Slovenia 65.61% 2,078,034
Hungary 65.48% 9,606,259
Morocco 64.81% 37,772,756
Senegal 63.58% 17,653,671
San Marino 63.50% 34,085
Nauru 62.84% 10,903
Ghana 62.69% 32,395,450
Qatar 62.09% 2,979,915
Laos 62.02% 7,481,023
Saint Lucia 61.43% 185,113
Oman 60.52% 5,323,993
Uruguay 60.46% 3,496,016
Burundi 59.99% 12,624,840
Gabon 59.78% 2,331,533
Bahamas 59.62% 400,516
Finland 59.59% 5,554,960
Namibia 59.52% 2,633,874
Israel 59.50% 8,922,892
Bolivia 59.26% 11,992,656
Germany 58.92% 83,883,596
Kenya 58.60% 56,215,221
Grenada 58.55% 113,475
China 57.24% 1,448,471,400
Ireland 57.22% 5,020,199
Malaysia 57.07% 33,181,072
Mauritania 56.83% 4,901,981
Costa Rica 56.42% 5,182,354
South Africa 56.30% 60,756,135
Ethiopia 54.70% 120,812,698
Seychelles 54.21% 99,426
Dominican Republic 53.58% 11,056,370
Mexico 53.32% 131,562,772
Serbia 52.75% 8,653,016
Colombia 52.40% 51,512,762
Togo 52.35% 8,680,837
Kyrgyzstan 51.60% 6,728,271
Saint Kitts And Nevis 51.45% 53,871
Ecuador 51.41% 18,113,361
Chad 51.11% 17,413,580
Ukraine 50.49% 43,192,122
Lesotho 50.46% 2,175,699
Armenia 50.09% 2,971,966
Rwanda 49.82% 13,600,464
Puerto Rico 48.90% 2,829,812
Liberia 48.85% 5,305,117
Fiji 48.68% 909,466
Slovakia 48.14% 5,460,193
Netherlands 47.56% 17,211,447
Samoa 47.46% 202,239
Central African Republic 47.16% 5,016,678
Australia 46.80% 26,068,792
Algeria 46.21% 45,350,148
Vanuatu 46.18% 321,832
Poland 45.61% 37,739,785
Trinidad And Tobago 45.41% 1,406,585
Malawi 45.30% 20,180,839
Iraq 45.14% 42,164,965
Guyana 43.56% 794,045
Tajikistan 43.09% 9,957,464
Equatorial Guinea 42.99% 1,496,662
Honduras 42.62% 10,221,247
Benin 42.52% 12,784,726
Iran 42.42% 86,022,837
South Korea 42.13% 51,329,899
Burkina Faso 42.02% 22,102,838
Panama 41.90% 4,446,964
Nicaragua 41.69% 6,779,100
Cameroon 41.60% 27,911,548
Vietnam 41.29% 98,953,541
Tonga 41.28% 107,749
Thailand 41.06% 70,078,203
Belarus 41.00% 9,432,800
Norway 40.94% 5,511,370
Mali 40.73% 21,473,764
Malta 40.60% 444,033
North Macedonia 40.45% 2,081,304
Georgia 40.43% 3,968,738
Papua New Guinea 40.17% 9,292,169
Niger 39.80% 26,083,660
Switzerland 39.80% 8,773,637
Eswatini 39.63% 1,184,817
Djibouti 39.14% 1,016,097
Tanzania 39.04% 63,298,550
Myanmar 38.75% 55,227,143
Madagascar 38.52% 29,178,077
Ivory Coast 38.39% 27,742,298
Guinea 38.37% 13,865,691
Uganda 37.64% 48,432,863
Philippines 36.97% 112,508,994
Romania 36.80% 19,031,335
Latvia 36.70% 1,848,837
Bangladesh 36.14% 167,885,689
Lithuania 35.87% 2,661,708
Andorra 35.40% 77,463
Sweden 34.89% 10,218,971
Denmark 33.57% 5,834,950
Nepal 33.13% 30,225,582
Taiwan 32.73% 23,888,595
Turkey 32.66% 85,561,976
Bosnia And Herzegovina 32.53% 3,249,317
New Zealand 31.81% 4,898,203
Indonesia 30.56% 279,134,505
Czech Republic 30.05% 10,736,784
Nigeria 29.17% 216,746,934
Cambodia 28.59% 17,168,639
Uzbekistan 28.36% 34,382,084
Moldova 28.29% 4,013,171
Chile 28.29% 19,250,195
South Sudan 28.09% 11,618,511
Peru 27.09% 33,684,208
United Arab Emirates 27.09% 10,081,785
Guatemala 26.48% 18,584,039
Haiti 25.79% 11,680,283
Paraguay 25.78% 7,305,843
Marshall Islands 24.84% 60,057
Saudi Arabia 22.49% 35,844,909
Luxembourg 22.29% 642,371
Kiribati 20.09% 123,419
Kazakhstan 19.94% 19,205,043
Comoros 19.52% 907,419
Micronesia 18.59% 117,489
Bulgaria 18.31% 6,844,597
Azerbaijan 17.66% 10,300,205
Botswana 16.47% 2,441,162
Turkmenistan 15.29% 6,201,943
DR Congo 15.00% 95,240,792
Russia 13.75% 145,805,947
Kuwait 11.64% 4,380,326
Tuvalu 11.53% 12,066
Timor Leste 9.38% 1,369,429
Estonia 8.56% 1,321,910
Solomon Islands 8.20% 721,159
Afghanistan 6.13% 40,754,388
Brunei 2.58% 445,431
Hong Kong 0.27% 7,604,299
Thank you for posting this for us to understand how Debt to GDP works around the world. The Philippines is actually in a good economic position as mentioned by Secretary Diokno. He said the Duterte administration has seen the best economy in his 30 years of government service in the financial sector. 😊👍🇵🇭🇨🇦
@@silverrain940 people loved being hysterical. If you think thats bad, look at my country Indonesia we "only" have 30% debt to gdp ratio yet some people here cant stop talking about it like we are in the apocalypse.
@@harukrentz435 true! I guess very few people understand the concept of Debt to GDP. It should be taught in High School . 😊
The Philippine economy is very resilient, defying naysayers for decades already despite the rampant corruption in governance. I'm not religious but it seems God always finds a way for us to overcome obstacles in unexpected ways. From the 1970's OFW migrant workers to the current BPO industry, the Philippine economy has always managed to thrive despite international economic downturns. I guess the next "blessing" will be the tourism industry which could consistently bring in billions of dollars annually, with the increasing popularity of our island beaches that are the best in the world. The Philippines is truly special.
investing in industry is much better in my opinion. interms of natural beauty, we might be beautiful but so is every other SEA country especially Thailand were precolonial structures are rampant since they were not colonized. Relying on tourism is overrated and feels the same as relying on agricultural output for funds, ie not very innovative.
Better roads and more bridges on the other hand would also offer more productivity and money in the longterm.
@@MarkMuhammad190 One doesn't preclude the other. It's not a choice between investing in manufacturing or tourism.
Tourism naman talaga ay isa sa mga main source of income ng pinas nito lang nag boom ang BPO pauso kasi si Mar Roxas
@@s.t.santos5928 it does actually, we can't focus on all these things at once! Even just advertising the Philippines abroad costs a lof of money, and even if it's just a few seconds.
There's just less potential in tourism is what I was trying to say.
@@MarkMuhammad190 We're done with the advertising and now reaping the results. Remember the WOW Philippines campaign years ago? Couple that with the Build Build Build infra projects and we're on our way, Btw, foreign vloggers also contribute somehow.
CHICLAYO PERU 🇵🇪 🤝 MANILA PHILIPPINES 🇵🇭 🇵🇭
Foreign Debt is what should we be keeping an eye on. A country with domestic debts can easily pay it through printing its own currencies at a sustainable rate and pay it those locally/domestic loans in the country's own currency (PH Peso)
We can't do the same with foreign loans, as they use a varied amount of foreign currencies we can't print the US Dollar, nor the Yen, nor the Remnbi.
Fortunately, the Philippines have the lowest amount of foreign debt within ASEAN and has a high foreign currency reserves.
In addition, continued 6% or higher GDP Growths helps debt repayment by having more capital to pay it.
This a japan moment japan has massive internal debt but very low foreign debt while the Philippines foreign debt is certainly large the percentage is abnormally small for a country thats still developing if the Philippines can keep up its impressive gdp growth the current debt is not going to be a problem
@@augustuslunasol10thapostle
Indeed, the countries that mainly defaults are countries that have intolerable external debt, this is why reasonable economist consider the debt as not of concern, not only because it is within the tolerable 60% Debt to GDP Ratio, but its external debt is really quite low compared to other countries in ASEAN.
Sri Lanka defaults due to its hig external debt
Pakistan defaulted due to its external debt
India defaulted during the 1997 Asian Financial Crisis, due to its external debt.
The Philippines ALMOST defaulted during the late 80s because of its external debt at that time, but the IMF gave the PH a debt-restructuring deal back in 1988.
i dont think the government can print any more money currently honestly which is a problem, but just as the video said if the economy keeps growing then it shouldnt be a problem to pay off those debts
@@KimJongUnGamingAndVlogging
Printing monry isn't always a problem, Central Banks all over the world always do it, but it must be done where GDP Growth is evident, demand is high for the currency, and many more factors. That's why I emphasized on the word SUSTAINABLE.
00
'Wag magreklamo ang hindi naman taxpayer! (Nasa 35% ang income tax ng mga manggagawa. Alam kong may VAT lahat ng mga bilihin pero ang malaking population ng working class ang mga consumer.) Anyway, natuto na ang mga Pilipino na 'wag umasa sa Estados Unidos kaya alam kong sa sariling kakayahan malalampasan natin ang mga balakid sa pag-unlad. 'Wag rin maniwala kaagad-agad sa ibang bansa. Pwede natin silang gawin kaibigan... pero hanggang kasosyo lang.
kaya sa china nalang mangutang?
@@genaldgalicia5834 halos po lahat ng utang natin ay galing sa japan
@@genaldgalicia5834 most of our debt are from Japan bro tsaka anong masama mangutang sa china eh kung ang foreign debt nga natin ang liit tas most galing japan pa anong masama sa china kung nag papalakas ang gubyerno natin ng relasyon sa china? ano gusto mangutang nalang sa kapitbahay nyo?
@@genaldgalicia5834 hindi porket may galit kayo dun sa isang bansa hindi ibigsabihin nun wala silang maitutulong sa ibang bagay maliit man o malaki
Fyi kapatid lahat ng binibili naten ay may buwis.
The Philippines will no longer be borrowing as much as it did in the last two years.
The debt burden grew so much because of the pandemic.
Add to the fact that the economy is growing faster than expected despite the inflationary effects of the lockdown and the Ukraine war.
Government tax revenues also steadily increased and will continue to increase as GDP increases as the economy becomes more open.
Just a return of tourism revenues to pre-pandemic levels and the projected increase in in-bound foreign remittances would be enough to lower the Philippine debt significantly.
Add to that the economic benefits coming from the many recently finished BBB projects and those that are slated to be finished in the next 2-5years.
Moreover, the Philippines just liberalized the laws on foreign investments and opened many economic sectors. These are already attracting many foreign investments.
Lending institutions are offering more and more loans to the Philippines because the Country can easily pay off its debts.
Being able to borrow is always a good thing, you just have to make sure the loan goes to the purpose it was borrowed for. Smart business men knows, you have to spend money to make money.
The Philippines has a SEVERE lack of infrastructures kaya napag-iwanan tayo ng mga kapitbahay natin. We need roadways, ports, rails, bridges, etc. for connectivity. Hydroelectric dams for drinking water, irrigation and energy generation. We also need to modernize and update our communication infrastructures for internet, telephone and tv. We need schools, hospitals. We need a lot more electric power generating plants.
As the report said we have a very good Debt-to-GDP ratio which means lending institutions does not see us as risks and that we can easily pay the debt. We should make use of this oppurtunity to borrow as judiciously as possible.
Totally Agree!!! Philippines is booming!!!
Agree, especially in the opening of the country to foreign investments
What a booming Philippines, 6.1% inflation, 56 pesos to the dollar, high fuel prices, tax tax, tax, debt, debt, debt. The last I saw in the news, they will borrow again. The new Singapoor!🤣
@@Valair2021 Well, despite the inflation being above projection, the Philippines managed to exceed GDP growth by a wide margin in the first and second quarters.
The GDP numbers grew more than the inflation numbers.
What taxes are you talking about? The government is not keen on imposing new taxes except with respect to online commercial transactions which is just fair to businessmen who do business through real establishments like shops.
The peso depreciated against thee dollar. That's true. But how many currencies have not depreciated against the dollar?
More and more businesses which closed down during the pandemic are starting to open, local and international tourism are both on the rise, dollar remittances are headed towards recors levels (despite the fact that ofw deployment remains way below pre-pandemic levels).
Traffic in Metro Manila which costs the Philippine economy about 2B dollars in economic loses monthly is easing up. So is traffic congestion in areas outside of metro manila.
I dare hazard a guess that you are a yellow turd who, because your candidate lost, cannot accept the fact that the Country is managing to grow evem without your "Santa Mama" at the helm.
The Philippines is different in that it has a huge domestic market in the midst of a demographic bumper of working age people. It also has about 10 million people working overseas who remit precious foreign currency.
the tourism there is getting better and better too knowing how the country is actually flourishing throughout the years. New government destroying old corrupt government, slowly killing the insane drug issue and hopefully soon the gun issue's aswell but so far the country is going in the right direction. I believe philippines will eventually stray away from being a 3rd world country (even though atm it's not really considered a 3rd world country anymore). Only thing i would also make them implement is the 2 children rule. I've seen too many well below the poverty family's there having a bunch of kids for no reason at all, it's kind of getting better in that sense now since the newer generation are kind of eager to go overseas for work to provide for they're family but still a further action needs to be taken care of when it comes to some parents having 7-8 kids. my aunties, cousins and uncles having kids from left to right living in a shit box house and little income is a great example of it but at least they have some little help from they're families overseas but you can't say that to the other filipinos having a lot of kids with no help at all.
Well this is so true, USD comes to PHL from OFW, if on ave. Each sailor earn $2k/mo and remitted to his family then a lot of Pinoy seafarers deployed. Then that’s an addition to foreign currency reserve for the country.
@@trancendentresurrextion8720 We don't need that 2 children rule. Why do you think wealthy countries have declining population without implementing such rule?
Not only of the OFW, but a memorandum from BSP regarding precious metals also helped.
Currently, all gold mined in the Philippines is required to be sold to the Central Bank. The mining company or agent cannot sell gold (at least legally) to a foreign company directly. This allows the BSP to regulate its gold reserves as well
@Cess your very very wrong,look around you ,be real our kids are now producing kids,its now a big problem,teenage pregnancy are now common and all of these had become single mom,i see a 17 year old have 3 kids and no husband,the government should intervine to these menacing problem ,there should be a law to stop these problem
Very informative video as well as the comment section.
I like this channel. Nothing about politics, just FACTS. Thank you.
When they build a road they collect polls and the people pay it back in one form or another, the same goes for any infrastructure. The rich get richer and the poor gets the burden.
Sadly, most Filipino is ignorant when it comes to economics. And some political party are exploiting it just to cause chaos.
these infrastructure will be of help especially to the transport of goods, specially food and avoid more spoilage which has been a big problem here in the country that almost no one cares about. Transport from island to island will be far easier and lessen the strains. One thing to note though is that we need less cars on the road and develop our public transport system for not only will it lessen traffic congestion but it will also lessen air pollution in major cities
Digitalization was rising in fact online shopping produces measure to sustain economic growth. The economic team must plan to use these platforms to be beneficial as the source of revenues.
Yup digitalization is important for economy like the philippines and indonesia. Take a look at Indonesia for example. 60% of its population is working at informal sector, a sector that is legally in tax exemption so in order to get money from this sector the gov is upping the digitalization progress.
I saw in the comments that a large part of the debt is due to infrastructure and I agree. Yes investing on it is good but what happened is they focused too much on it they forgot about the other aspecrs like the agriculture industry. Heck some of the road widenings near me just turned into a parking area or a stand for foods and products instead of helping ease traffic it jist made worse and they even cut hundreds of years old trees for it. Some even have a pole in the middle of the said road. They also made a lot of infrastrucfure at Metro Manila that only people in there will benefit while using the money of the whole nation
These road projects are indeed beneficial to agriculture. Farm to market roads are very important that reduces fuel cost, reduce vehicle maintenance, and increase transport safety of agriculture goods. We call them vegetable highways which also transport needed materials and big equipment to build better farms and agriculture industry.
Duterte more focus on infras while bbm will focus on agriculture. We will see the improvement soon
You are too shallow. Widen roads ease traffics and the road to market travels are way easier. Fast transportation means no delay of goods.
roads aid agriculture more than you can think.
Giving money to the agri sector is useless if you don't have the means to get those products from the farms to the city properly.
This is also one of the reasons why middle men have for years made goods sold in the city (like Manila) expensive since they use the excuse of bad roads as a reason for increased prices and with more "hands" the goods get passed on to, the more expensive it gets.
Those pole were already there when roads were still narrow. They pushed through the road construction without waiting for the electric distribution company to move their poles and lines.
While the country's debt to gdp ratio has increased, it is still at a manageable level and our external debt remains low, one of the lowest in ASEAN. Plus our country's credit rating remains good.
The Philippines also need to improve our infrastructure thus Build Build Build.
Overall, the debt issue isn't a problem at all!
It never was.
The only problem was the main stream media and the leftists who have for years been trying to spin it as if it was a very huge problem and making it look like it's the reason why Filipinos are poor or that we have been suffering recently while forgetting or even purposefully ignoring the fact that COVID-19 happened and that the Ukrainian War was a thing plus the US and Western reaction to force sanctions caused oil prices to skyrocket.
We need the infrastructure development.
I do business by bringing products from the south of the country to the capital. I could only do this by shipping or by air freight, which limits the products that could be traded. We limit it to pricy goods which would return our transport costs.
Build, build, build developed the road systems. I am now able to bring more goods in. For the first time, local products can be priced lower than imported products.
I am not a National Economic Expert. I am just a small business owner, but this is the truth that I see.
Thank you for making this informative video neutrally
That’s a lovely hair you have there and I admire it so much
So tell me are they real or you fix it
Philippines only has around 60% Debt-to-GDP ratio, which is still considered healthy. For comparison 2021 Debt-to-GDP ratios of other countries are :
Japan : 256.9%
South Korea : 51.3%
China : 68.9%
US : 133.3%
Canada : 109.9%
UK : 108.5%
France : 115.8%
Germany : 72.5%
Russia : 17.9%
Israel : 73.2%
UAE : 37.3%
Saudi Arabia : 29.7%
Singapore : 137.9%.
Indonesia : 41.4%
Laos : 70.9%
Malaysia : 70.7%
Myanmar : 58.4%
Thailand : 58.0%
Vietnam : 47.9%
For more info, search the state of worlds debt visual capital
Also, the increase in debt is universal. Debt-to-GDP ratios before and after the pandemic started.
US from 108% in 2019 to 134% in 2020.
Canada from 87% to 118%
UK from 83% to 94%
France from 97% to 115%
Germany from 59% to 69%
Japan from 236% to 259%
South Korea from 42% to 49%
Malaysia from 57% to 68%
Indonesia from 30% to 40%
Philippines from 37% to 52%
Source: Statista
Let's not compare the Philippines to well established economies that are much more resistant to shocks and have more levers to pay off the debt such as the US.
Better to compare the Philippines to countries of the same macroeconomic production like Vietnam
@@efumali And US is likely heading to recession. So is Europe.
@@johnsilver9338 and your point?
@@efumali Refuting your words obviously if you don't get the point. US is not a well established economy.
@@johnsilver9338 entering a recession and a country going into a debt crisis are two different things.
Is US or Eurozone entering into a debt crisis even with the recession? Nope.
As long as we keep the covid cases low, the economy will always grow.
Proud ako sa mga Estudiante na NASA comment section ngayun magaling magaling magaling napaka galing.👍👍👍
The govt already printed money. Remember the new 1000 PHP bills? they were printed without USD backing, one major reason the PHP to US shot up to 56/1. The last time we Printed (minted) money like this was during PRRD, those new coins (the one's that stupidly looks all alike) were minted without USD backing. PRRD and Bangko Sentral allowed it to pay off the expenses incurred when PRRD doubled the salaries of all Police and military personel. that time the inflation shot up to around 8-9% and USD was 52/1. The thing with the PH isthat we have very intelligent and capable fiscal planners, thats why we kept afloat with all this money printing going on.
well explained and I don't see that this Channel is anti Government or biased.
Instead of tax hikes, the collection of revenue should be strengthened, as there are still professionals like doctors, engineers, architects not paying the true amount of their incomes...
Great video especially on the fact that only 27.5% is foreign debt.
There are just items that should have been explained.
1. A lot of these foreign loans are self-liquidating like the Metro Manila Subway and North South Commuter railway. Don't need taxes to payoff these loans since the projects can generate revenue.
2. Payment terms. Loans from Japan for example have a grace period of 10 or 12 years if I'm not wrong. In the short-term it won't have an impact on debt servicing.
3. I don't see any major projects as huge as NSCR and Manila Subway in the future so the debt could remain flat or even lower considering the new President's openness to PPP coupled with the amendment to the Foreign investments Act.
Yun naman pala eh. Kaya yan! :)
A huge chunk of the Phils newly incurred debts were actually spent or are alloted to fund huge infranstructure development projects across the country. These are actually investments that would produce huge economic - and social - returns that would further add to d country's future GDP growth which in turn translates to more tax and other auxiliary income for the govt that would be used to pay off the national debt. Moreover, with majority of d debt being owed to domestic financial institutions, the payments and profits to be had on these would likewise add to d GDP. It's a win-win scenario. Hopefully, corruption and fiscal mismanagement won't muddle this up
yeh but would it be enough to catch up to the debt?
@@trashdrawingghost7843 no hurry. we have national reserves which is worth more than our debt but we can't just use it to pay the debt since in cause of major financial crisis for the PH. we would need that reserve. example, if china goes to war, we need that reserve money for national defense.
@@hahayessir400 relief
@@trashdrawingghost7843 It definitely would, given the fact that strategic investments in infrastructures - which majority of these debts fund - typically result to returns that are three to four times more than the original expenditures and on a long term bases. You can cite those made by both Japan and South Korea as examples decades before.
@@brianfd27 cool
The OFW is the unsung heroes in the PH, and also the BPO industry… this two were the main reasons why PH is not bankrupt, given how corrupt their government.
I totally agree with you
How about the workers in the Philippines, the businessman, and other sectors are they useless to you?
Its is not only the OFW. Yes they are the reason of the large foreign reserve. But if you look closely on the economy our industry and service sector is the largest contributor. Hopefully our agriculture will also see potential growth since the current administration is looking for a inclusive development of our farmers and fishermen. Hopefully they will be successful these sector of society have been neglected for decades.
im from PH... this is the best documentary i have watch .. non bias just facts...
Key thing to do by the government is open the economy, avoid tax initiatives, slow down on loans.... Let us all do our part to move this nation above.... and our faith in the God Almighty to always shield us from the impacts and shocks of high inflation....
How about the debt of Thailand, INDONESIA, Malaysia and Singapore? Pls make a content🙏
Stay tuned!
@@BehindAsia nigga
Hayaan mo ang utang nila,ang intindihin mo ang utang natin.
@@mikem.6454 Hahahaha Wala Kang paki sa gusto ko!
@@mikem.6454 we need to study how debt affected them and how they got that much debt in the first place, we will gain insights from having a larger scope in research. Wag close minded medyo.
The Philippines will survive this.
From a June 2022 news article at Philstar our finance chief made this report;
In a report, Department of Finance chief economist Gil Beltran said the Philippines has the lowest external debt as a ratio of gross domestic product (GDP) at 27 percent among ASEAN economies in 2021.
“In Southeast Asia, the external debt-to-GDP ratio of the Philippines remains the lowest among five ASEAN countries,” he said.
In comparison, Malaysia and Thailand’s foreign debt ratios hit 69.3 percent and 39 percent of their respective GDPs last year. The external debt-to-GDP ratio of Vietnam reached 38.6 percent while that of Indonesia stood at 35 percent
no Malaysia only have 5 percent foreign debt, according to this channel itself
Philippines has the youngest population in east asia, with a median age of 24 years old. Even younger than Indonesia’s 28 year old median age. And it has the fastest growing economy in the region this 2022... so theres not really anything to worry about that country for at least the next several years
The Philippines will never escape from extreme poverty until the church loses its power.
See what happened to Sri Lanka
@@Astrotase A real-world lesson on why organic food is bad.
@@Astrotase diokno said phil dont buy gold bcoz
@Gamaliel Bontilao A large number of food recalls by the FDA are bacteria contamination of organic food.
There is 2 kinds of debts, debts owed in foreign currency and debts own in domestic currency. The debts in domestic currency are not really debts in the normal way we view it.
If the debt is denominated in the currency that the country controls, they can always “print” more of their own currency to meet their interest obligations. They can even control the interest their paying on those debts. This is why Japan and US have practically no risk of involuntary default as their debts are in their own currency.
In debts owed in currency beyond the control of the government who issued them, that government is subject to the same constraints as companies and individuals. They must earn in the currency to pay it off, or borrow. They can default, and the rate at which they borrow is subject to market forces which will take into account on the fundamentals of their financial position.
Debts in foreign currencies are dangerous and is why the Philippines took so long to advance. The Marcos administration practically borrowed heavily in foreign currency and grossly mismanaged those funds. The Aquino administration made it worse by not using the Bataan Nuclear power plant which was financed in foreign debts.
If we want foreign currency. It’s better for the government to issue debt in pesos and buy those foreign currencies. It will cause a tiny bit of inflation but at least there is no insolvency risk which could lead to crisis.
Just build a lot of infrastructure, make people happy so you can get re-elected, those infras will pay for themselves eventually, even if corruption and other political issues still exists.
True. It's crazy how the Philippines continues to grow despite rampant corruption in governance.
3:00 i remember when the philippines debt to gpd ratio reached 90%. 63.5% is still managable imo.
The recent administrations historically have been pretty much hands-off in overseeing the Philippine economy (besides taxation and spending) leaving it to the BSP and DoF to deal with economic policy. And appointees to these agencies are usually experienced economic bureaucrats rather than political appointees. So barring any more black swan event at least modest growth should be expect in the next few years.
I remember when President BBM removed the perks on Bulacan airport city as an economic zone, he mentioned that what he wants to have is a bigger tax base, not higher tax rates.
Makes sense. So the government needs to invite more investments into the country then to increase that tax base from which to get the debt payments.
Coming from a guy avoidant of paying taxes sure 🤣
What most of us don't realize why the Philippine economy is so resilient is because of the OFW and BPO contribution.. As long as the government won't spend too much dollars, Philippines will remain strong.
philippines gdp in 2021 is $394billion
and also philippined also has a rrserve gold and natural that almost 3trillion$
Thank you for claryfying our county's debt issues...however looking at solving debt payment from a purely economic point of view will not be complete without issues that promote economic development. Wehave complete trust in our economic team.. We expect more foreign investments thru partnerships or jv. Domestic economy will grow bec of improved infrastructure,Solving energy problems. Improved peace and order.. Boost in tourism.. And good governance by example to partly solve corruption. We are bullish with a very competent newly elected president
Debt is ok as long as it is a good debt. Even billionaires has debt.
if it is managed by Philippine Government that is bad debt.
@@chadzrgrc debt to pocket, their favourite business model
This is actually a crucial issue for the development of the Philippines. There are some factors our country faces if they are confidently overspending and taking loans from internal and external forces; 1. The world is facing and assuming an economic recession in Europe, America or even China, if this happens, interest rates will soar, inflation will increase, the problem with supply and demand; 2. If there will be an economic recession, the Philippines will be the one who is seriously affected, a large sum of money and a part of the Philippines' GDP is coming from remittances of OFW's, if problems like this arise, they are the ones who are taking the blow, because, if an economic recession triggered all over the world, corporations and other services who employed Filipinos will be reduced or terminated in order for them to cut cost of expenditure. As the Philippines, heavily relies on remittances, it will affect or if it becomes a serious matter, it will totally collapse the economy since the country continuously borrows and overspends money to fund their projects.
That's why the current administration is looking for other alternative solutions to gain revenue by developing our current resources so as not to depend only on OFW remittances.. Prioritizing in the areas of agriculture, power generating resources, microeconomic businesses, new technologies, infrastructure, peace and order...
How about the debt of Singapore which have external debt of 1.7trillion dollars which the gdp os 300b dollars.
Can I ask for the sources of the figures. I will be using them in my academics. Thanks❤️
The "debt burden" of the Philippines can be hurdled if and when corruption is removed in the government.
Good luck!
With a dynastic political system, I doubt that it will happen anytime soon. Corruption will be passed from one generation to another. The Philippines has never learned its lesson.
@@pektowanderlust The country is more politically and economally better now compared to what it was during the 90s and 2000s
More economic growth stiffles the desire for corruption.
corruption now starts in the grass roots.
In my hometown, majority of people will not vote for any politocian if they will not pay them before election.. It is now getting a normal practice to take money from several rival politicians and they will vote for who will give higher amount. Election now is a bidding.
@@herrkommandank675 You're delusional
60-70% Debt to GDP ratio, that is still ok. As long as we grow our economy to outpace the debt, we can survive the worse.
What's good that I didn't knew most of our debt is national/local rather than foreign.
The only hurdle would be a global recession or something much worse.
3 trillion pesos only is our Foreign debt. The rest is local debt. Even economists are positive with this because in the nxt 10yrs all this Infrastractures built will boost our economy since it is all an excellent invstment since its a mass transpo and road and bridges was built.
Yes, the govt can AS LONG AS IT APPLIES PRUDENT MANAGEMENT SKILL, BE A CONSERVATIVE FISCALIZER. THAT TRANSLATES TO STRICT RULES OF NO WASTAGE, NO ADD ONS TO NECESSARY PROJECTS. SA PILIPINO: MAGING MATIPID SA LUHO AT MAGING MATAPAT SA LAHAT.
The debt situation in the Phillipines is much better in nearly every measure than in most european countries. Even Germany has a debt/GDP ratio of around 70 %. Many countires in the western hemisphere have even debt/GDP ratios of over 100 %. Take Italy as an example. 150 % approx. with a growth of 1-2 % and a degenerating demography. It all depends on the cause. See depths as an investment too grow further with this pace, the Phillipines are certainly in a very comfortable situation.
One man has 1 million dollars in investments in various asset classes. And he live in a 1 million dollar house for which 80% is mortgaged to the bank, meaning he owe the bank $800.000 . His monthly income is $ 50,000, more than adequate to pay for the monthly instalments on this. Another person lives in Tondo, he has got little to no money and live from hand to mouth. He live in the slum in a wooden shack. And he makes $ 3,20 a day. He has NO debts. After all who will want to lent him any money. Some came by and when ask about the two persons, he exclaimed WOW, the first man is so heavily in debt, it must be really bad for him, Thank goodness for the other man, he has got no debts, he owes no one any money. He should be blessed and happy. LOL
@@jsanon1634 there is a saying that having debt will make you not be able to sleep. no debt = peace of mind.
@@hdihiiehei Such simplistic and naive view
@@hdihiiehei May u always be happy and free. With no money and no debts...
@@hdihiiehei Btw do u own a house, did u take a mortgage loan from the bank? Or u have no such debt and are homeless...
Compared to asean countries Philippines debt is low
Asean is doing well check other countries like south asia, south america, etc
Asean is doing well check other countries like south asia, south america, etc
exclude laos cambodia from the ranking then our country is the country with the highest debt to GDP ratio
Clesnliness in all aspect of life is very important.
When I was in high school in early 2000s I saw a news on tv that every Pilipino newborn or adult owe 57 thousand pesos, I wonder how much I owe now and I sure damn well that amount has no interest yet.
Still a manageable level of national debt. Whats scary is the food supply. And clearly, the signs are showing.
That's why PBBM is focusing on agriculture assets unfortunately he focuses on exporting it rather than to fill the local market gap.
There's no problem with the Philippine debt. The problem is OLIGARCHS👀.
Corruption generally.
Wow, the Philippines only has a 3-7 ratio of Foreign to National debt. I'm sure that number wasn't the opposite back then which hindered Filipino growth
Philippines busy reminiscing in the 60's
first!
please correct the tax rates.
35% is only for annual income earned in excess of P8,000,000. if you earn below 250,000 annually, you are exempted from paying income tax.
Please correct your comprehension. It was stated "as high as 35%" which is not a flat rate for everyone.
we 1.66 Million metric tons of Gold and its all deposited in Philippine Central Bank. some US Fedral Reserved and World bank.. in the BSP is over 400,000 tons of Gold, plus still burried unkwnon location. 600,000 tons are in the Swiss bank and 170 nation
kailan dadating🎶Mahirap umasa 🎶🎶Don't wait until the economy collapse.No more metric tons appeared.
we spend more on infrastructure but in the long term it will pay off by itself because infrastructures built are long term investments with continous returns like the subway project, airports,seaports and railway lines which in the long run will have steady income. unlike sri lanka who borrow ang spends on un productive infrasturcture projects.
Lol the new senate is productive investment?
The Philippines imports both rice and fish from Vietnam. Philippines got a lot of American aide sense the end of WW2 while The USA dropped more bombs on Vietnam than ALL nations dropped in ALL of WW2 sense the end of WW2.
Does anyone think that maybe the Philippines made a lot of big mistakes over its history of independence in 1947?
One thing that I know u got it wrong is we got our indepdence in 1898.
@@daigonaticsgulapanatics2556 we were under the rule of United States up until 1946. You're talking about the "independence" from Spanish rule. We were transferred over from the Spanish to the Americans via Treaty of Paris, including the territories of Guam, Cuba, and Puerto Rico.
@@cgRui34 you don't say "we" when you are basing on "white" history. when its clear from the numerous documents that we are a republic and even recognition from the American expeditionary forces which implicates our sovereignty through our Land.
@@daigonaticsgulapanatics2556 Didn't know there was a big difference between "white" and "Pinoy" history hehe. So what about the Japanese Occupancy period? So much Filipino "independence" during that very short, but colorful period too huh? I'm sure they cared a lot about Filipino land sovereignty and freedom, or is this part of "yellow" history? And I'm assuming the Commonwealth era was all propaganda and completely had zero impact on the Philippines' history and governance as well.
@@cgRui34 good point. It doesn't matter if a person thinks that the Philippines were some sort of vasil state of the USA or an independent Republic. They sure the hell were none of the above between 1942 - 1944.
This debt was use as Propaganda against the Duterte administration, I always compare it to other countries debt, South east Asia and all over the world and we are nowhere near to Sri Lanka as what the Opposition and media narrative was. He built 2 railways, First Subway in the PH , two MRT, one LRT ext, one United common Station, Bridges, Skyways, SeaPorts and Airport that will be finish within the next 2 yrs. 75% decrease of crime rate and 70% trust rating at the end of his term. He aint perfect but he did his best within his 6yrs term.
Very true kaso naturalesa ng tao ang di makontento
Or feeling nila mas superior sila kung sila nka posisyon aminin man nila yan o hindi yan ang katotohanan
Mga kampon ni lenlen Lang you. Partisanship Kasi.
Update on personal income tax it's 35 but the corporate it was reduced from 30 to 25 or 20% for july 2020 fiscal period. Update your video.
The Philippines can be great again GOD BLESS PHILIPPINES
Hey, you sorta gave away that you are also Filipino and are based here, as you asked the questions at 7:27 in the 1st person plural (can "we pay" down the repayments, "our economy" etc vs "can they pay" and "their economy" ). It's fine since most of us are Pinoy too, but it would seem more objective and cleaner to the international viewership if any reference is made in third person to our country or the questions aimed at either the government or population "can the Philippine government/population pay down the repayments ___ ?" Etc.
Methinks he’s Canadian with the way he says the word “about.”
Well, clearly, the previous administration has exhausted ph's financial resources. This current admistration will inherent a very critical financial problem that if managed uncorrectly, will be catastrophic for the archipelago.
The pandemic exhausted it, like the rest of the world. R u high? lol
@@snarveien1853 nde kasi ginamit ng tama ang funds.. inilaan sa walang kabuluhan na ayuda at inuna pa ang mga non working class kesa sa mga working class na syang pinaka apektado.
Malamang sinabayan na nila ng QE yan ng nde natin nalalaman kaya sobrang taas ng inflation. kasi kung pera naman na galing sa original circulation ung mga pinamigay mde naman cguro ganun kataas. kasi ginastos naman ng tao un sa products and services din. so gumagalaw pa din ang economy kahit pandemic.
nitong huli dumagdag pa halaga ng fuel (well nde nmn ito kontrolado ng government pero factor pa din)
“I will make it simple. Walang pera ang gobyerno! So you will be facing a lot of challenges as the new Finance Secretary of the incoming Marcos administration. So what is the plan?” That's Karen being a Karen...
Diokno instantly highlighted that the government is now in a favorable position. In comparison to prior administrations.
Prior to the Duterte administration, we were heavily indebted and had a hard time arguing with the IMF. Before, our foreign reserves will last for only 2-months at least. But with the Duterte admin, we have at least 9-months worth of import reserves,”
Disinformation tong si Sec Ben Diokno eh no 🤷♂️
@@chadzrgrc I understand your view about the ayuda, but without those people in the lower social economic brackets of our country spending those ayuda for foods, products, and services...... the economy will simply won't work
the govt will also face a huge volume of angry Filipinos that outweighs compared to the volume of those placed in the upper bracket such as the middle class and upper class in our economy because there are no jobs available in the middle of the pandemic
I know it pains all of us but in the middle of the pandemic myfamily also benefits to the ayuda of the govt temporarily because it provided us food and shelter
The challenge now that the philippine debt is 'manageable' is to achieve that 6 to 7% gdp growth then all is good. But mind you, decreasing our corporate tax rate but broaden our tax base, relative to our neighbors', can do wonders to our economy and in our job-generation effort. We can be looking at 10 to 12% gdp growth starting in 2028.This is worth looking into. First, our business environment and tax policies must be better than our neighbors'. The lowering of corporate tax, say to 25%,wil dramatically send signal internationally that philippines is the prime destination for corporate investments in manufacturing, mining... ad infinitum. It is almost assured, and as claimed by our eminent economists, that 6 to 7% is a walk in the park. Let's move to the next step and be ambitious and look at 10 to 12%gdp growth starting in 2028. This can be done.Build, build, build must continue as this will be a source of our future growth. We have been paying our domestic and foreign debts religiously over the decades and we have developed a reputation as a good payor, that's why japan are lending us money all these years. In short, we can fund our infrastructure by borrowing. Of course, we need to maintain a healthy balance in our gdp/debt ratio. We must dream big and risks are all part in this calculus. We can no longer let our OFW's take the brunt of our costly growth
nor let our call center industry be the driver(no longer dependable) in our job-generation effort. With our economy now open for 100%foreign ownership, this will drive our growth higher in the years to come.
If only the politicians here in the Philippines are not engaged in Corruption, we wont be in debt. Thats the sad truth here in the philippines
I don't get why you created a video about the Philippines' "debt problem" when our neighbors literally have way higher debts and external debt-to-GDP ratios
True Japan itself has 500% Dept to GDP its fvcking scary 😂.... 60% is still manageable for Philippines
This is to address the current trend of hating the government regarding huge borrowing to spend on aspects that will boost the economy. This is to nullify the propaganda the opposition has been trying to do since the Duterte admin.
Even the banker of the year 2022 Benjamin Diokno is not in favor of politicizing the Philippines debt as this is normal in other countries.
Was thinking this just now. Me thinks media dost protest too much. hmm.
I think this is the time Philippines has a potential to rise when they come together to focus on building each other and not tear down.
Correct po. Even the economist itself saying it will not affect the economy at kayang bayaran ang external debt ng pilipinas.
@@xavierluna9194 Ben Diokno's track record tells a lot about him.
One of the Philippines's bigest expansion problems is the laws that protect wealthy Filipinos. No real competition from outside the Philippines. Businesses that must have a Filipino partner (the wealthy Filipino) stifle real growth and hurt the average Pinoy. Special laws must be passed (and signed off on by Filipino companies that could be harmed by real competition) like StarLink, the most recent example.
They knew foreign investments would be great for the country but not for their personal bank accounts. Watch how all our ASEAN neighbors swiftly grew up around us while we're still in an odd place economically.
I hope those loan for mega infrastructures can connect all islands.
Only the Media here in Philippines is what making the Filipino people worry.
Philippine's debt aint that scary considering foreign debt is only 30%
Plus the Debt/GDP ratio says it all that the country can overwhelm its debt not until the 2020 pandemic hit Philippines.
as a filipino farmer, honestly this is the scariest video i've watched. 229 billion dollars in debt, and dollar surging, peso crashing (from 48pesos / dollar to 56/dollar). wont be surprised if this continues. economic collapse is just inevitable, and looking at these guys (diokno and dominguez) , one is overconfident and one wants poorer filipinos. i am growing my own food. i hope crypto helps solve this corrupt financial system.
The rise in that exchange rate is due mostly to the strengthening of USD against most currencies around the world. Not necessarily meaning the PHP weakened that much
@@jasmikko yes. this is why the dollar is surging. but at the same time, economic situation in US seems bleak. it's a weird inflation of paper money but deflation of USD situation.
@@MarviRafaelMontecillo USD is unique among world currencies. It operates and can print money in a way that no other central bank can do
The new government only had a month in office and you looking forward the economy to collapse? Are you that stupid? I bet if Marcos did not win the presidency your tone to the government will be different.
The Philippines has too many mouth to feed with very tiny income. Free bus and train rides, gas assistance to drivers of public utilities, handouts to the poor, seniors, budget for barangay officials, disaster every typhoon season, over development of land for shopping malls, condominiums, health and education funding crisis, corruption, too many underground economy, etc.
Build build build = debt debt and more debt
Almost half our GDP is from Remittances of Filipino Overseas Workers and that's a terrifying fact.
This is the reason Philippines wants "sabah" they just wanted us to get the resources to pay their debt. I dont wanna be a slave for them. Please leave us Sabahan alone. Thank you 👍
They can never get sabah back.. Sabah already recognized by UN.. If they said sulu have proof sabah belong to them, so what..? Malaysia also have proof that Singapore belong to us, but we can't claim Singapore as they already independent and was recognized by the UN..
The Philippines should be very careful in BUILD BUILD BUILD AND THE CHINESE DEATH TRAP LOANS.
Two things they need to do:
Attract and give incentives on foreign investments leaving China.
The second : continue the oil exploration hoping they find oil and be energy sustainable.
75% contractors are not Chinese mostly are japanese companies. And the payment started on 2050.
@@renerosel2710 Masusunod kamahalan.
@@renerosel2710 ano source mo po dito?
as per observation dumami ang chinese foreign workers dito simula ng build3x ni gongdi.
The exploration of Liguasan Marsh is expected to start in the 4th quarter this year. Hoping that this place will live up to it's projected promise. If it does, the Philippines GDP will grow even faster.
@@chadzrgrc according sa BSP, sa Japan tayo may pinakamalaking Utang, pang number 6 lang ang China. Usually pag china ang Nagfinance, meron silang deal na bigyan din ng trabaho ang mga citizen nila.
IDLE LANDS SA PILIPINAS
(sa mga Probinsya)
Marami ng lupa sa Pilipinas ang
nabili na ng mga chinese-filipino businessman na hindi dinevelop.
Naging 'idle' na at hindi na productive.
Hindi rin magalaw ng mga ordinarying Pilipino dahil
privately owned na.
Dapat magkaroon ng batas na
patawan ng Double or Tripple ang Tax ng mga 'idle-lands' para
mapilitan silang idevelop para
maging productive ang lupa.
they say that infra is the backbone of a good economy.. better spend it in infra so that the economy could grow much faster.. PH economy is based on services both local and international (OFW) and i think the president would want to invest in the agri for self sufficiency of food and not always rely on imports.. imagine if PH can maintain 7%+ growth even in inflation its a good sign.. the future is bright :D