Philippines: Selected Issues
Electronic Access:
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Summary:
This Selected Issues paper assesses potential spillover effects to the Philippines from US policy shifts and lower growth in China. The US fiscal expansion affects the Philippine economy through the interest rate and the trade channels. The net spillover impact on Philippine GDP is negative in the short term. Compared with the productive case, in which the net output impact is positive, the US nominal policy rate rises by less, but faster normalization of the US term premium leads to higher real interest rates. On the other hand, the gain from trade is smaller owing to the weaker domestic demand expansion in the United States.
Series:
Country Report No. 2017/335
Subject:
Corporate income tax Fiscal policy Fiscal rules National accounts Private investment Public debt Taxes
English
Publication Date:
November 10, 2017
ISBN/ISSN:
9781484326862/1934-7685
Stock No:
1PHLEA2017002
Pages:
43
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