PHThe Bangko Sentral ng Pilipinas (BSP) has warned that China's economic slowdown will have an impact on its trading and tourism partners, including the Philippines.
BSP Governor Benjamin Diokno said in a press conference that China's economic slowdown will certainly affect its key trading and tourism partners.
"In the case of the Philippines, China serves as the country's largest trading partner, accounting for 16 percent of our exports," he emphasized.
According to Philippine Statistics Authority data, shipments to China had the highest export value of $1.04 billion in July alone, accounting for 16.1 percent of the country's overall exports.
Domestic enterprises that directly deal with China, Diokno added, are at risk of witnessing lower production volumes as fresh orders from overseas markets dwindle, impacting the Philippines' overall output.
"In addition, China plays a pivotal role in the Philippines' tourism sector's recovery. Prior to the pandemic, Chinese tourists accounted for 21 percent of the 8.3 million foreign visitors in the Philippines, the second biggest after South Korea's share of 24.1 percent," he further remarked.
Nonetheless, the central bank chief said that the continuing recovery in the Philippines' trading partners such as the United States and the European Union can provide a cushion for exports.
This year, the BSP sees a 14-percent increase in export of goods.
Diokno pointed out that the International Monetary Fund's latest World Economic Outlook forecasts advanced economies to grow at 5.6 percent this year, with the US growing at 7 percent.
"In the case of tourism, the growth of other visitor markets like South Korea, US and Japan will be vital in ensuring the sustainable recovery of the tourism sector, and the broad domestic economy," he said.
In a report, Oxford Economics, said a slowdown in China's real estate market would impair growth more generally, particularly through lower commodity prices, which would hurt raw material exporters.
Capital Economics, for its part, said China's property slump has increased the dangers to some metals producers' export prospects.
Meanwhile, ANZ Research said the Chinese economy faces near-term downside risks due to deleveraging in the housing market and supply-side restrictions, to name a few.
"As the risks are brought about by Aside from the property sector, China's economic recovery of late has been dampened by two major supply-side constraints, i.e. the authorities' decarbonization efforts and the global chip shortage," it underscored.
BSP Governor Benjamin Diokno said in a press conference that China's economic slowdown will certainly affect its key trading and tourism partners.
"In the case of the Philippines, China serves as the country's largest trading partner, accounting for 16 percent of our exports," he emphasized.
According to Philippine Statistics Authority data, shipments to China had the highest export value of $1.04 billion in July alone, accounting for 16.1 percent of the country's overall exports.
Domestic enterprises that directly deal with China, Diokno added, are at risk of witnessing lower production volumes as fresh orders from overseas markets dwindle, impacting the Philippines' overall output.
"In addition, China plays a pivotal role in the Philippines' tourism sector's recovery. Prior to the pandemic, Chinese tourists accounted for 21 percent of the 8.3 million foreign visitors in the Philippines, the second biggest after South Korea's share of 24.1 percent," he further remarked.
Nonetheless, the central bank chief said that the continuing recovery in the Philippines' trading partners such as the United States and the European Union can provide a cushion for exports.
This year, the BSP sees a 14-percent increase in export of goods.
Diokno pointed out that the International Monetary Fund's latest World Economic Outlook forecasts advanced economies to grow at 5.6 percent this year, with the US growing at 7 percent.
"In the case of tourism, the growth of other visitor markets like South Korea, US and Japan will be vital in ensuring the sustainable recovery of the tourism sector, and the broad domestic economy," he said.
In a report, Oxford Economics, said a slowdown in China's real estate market would impair growth more generally, particularly through lower commodity prices, which would hurt raw material exporters.
Capital Economics, for its part, said China's property slump has increased the dangers to some metals producers' export prospects.
Meanwhile, ANZ Research said the Chinese economy faces near-term downside risks due to deleveraging in the housing market and supply-side restrictions, to name a few.
"As the risks are brought about by Aside from the property sector, China's economic recovery of late has been dampened by two major supply-side constraints, i.e. the authorities' decarbonization efforts and the global chip shortage," it underscored.