Connect with us

Hi, what are you looking for?


‘More stable’ global economy under Biden presidency to benefit Philippines

THE PHILIPPINES is likely to benefit from a more stable world economy and subdued geopolitical tensions after United States President Joseph R. Biden, Jr. took office on Wednesday.

In his inauguration speech, Mr. Biden offered a message of reconciliation, as the United States looks to restore alliances around the world (Related story on S2/8 ).

“America has been tested, and we’ve come out stronger for it. We will repair our alliances and engage with the world once again. Not to meet yesterday’s challenges, but today’s and tomorrow’s challenges. And we’ll lead, not merely by the example of our power, but by the power of our example,” Mr. Biden said.

In a Viber message to reporters, Finance Secretary Carlos G. Dominguez III highlighted this passage from the US president’s speech, saying this “bodes well for a return openness to international trade and investment and  will undoubtedly redound to our mutual benefit.”

Former President Donald J. Trump had pushed his “America First” policy, and provoked a trade war with China. Under his administration, the United States withdrew from the Paris Agreement, a global commitment to fight climate change, and the  World Health Organization (WHO).

“Adherence to multilateral agreements like the WTO (World Trade Organization), climate agreement and WHO, to mention a few, will make the world economy less risky, less volatile and more stable plus additional stimulus spending by the Biden administration will help boost global recovery. The Philippines will benefit from all these,” Finance Undersecretary and Chief Economist Gil S. Betran told BusinessWorld in a text message on Tuesday.

Reuters reported Mr. Biden issued an executive order on Wednesday to bring the United States back into the Paris accord.

Cheuk Wan Fan, the head of investment strategy and advisory for Asia at the private banking arm of Hongkong and Shanghai Banking Corp. Ltd. (HSBC), said the leadership change in the United States may ease US-China trade tensions.

“We don’t expect that a change in US leadership will bring a quick U-turn in US-China relations. However, with the expected shift of the Biden administration to a more multilateral policy approach in dealing with trade and international policies, this will reduce the risk of a sharp escalation of US-China tensions,” she said in an online briefing on Wednesday.

The HSBC executive noted the Biden administration will likely bring more predictable and market-friendly trade policies, but trade tensions between the two countries will “not be totally over.”

The United States and China are the biggest trade partners of the Philippines, with the US being the top export destination followed by China in November last year. Meanwhile, China is the country’s biggest source of imported goods, followed by Japan and the US.

Meanwhile, the Biden administration is pushing for a $1.9-trillion stimulus package to drive economic recovery.

The planned big spending by the US government will help the global economy recover faster, which will benefit the Philippines through trade and other channels, said Michael L. Ricafort, the chief economist at the Rizal Commercial Banking Corp. (RCBC) in a note on Thursday.

“However, these could be offset by divided US Senate (evenly split between the Democrats and Republicans; though any tie-breaking vote may come from US Vice President Kamala Harris) could potentially slow down the enactment of larger US stimulus, higher taxes especially on the wealthiest, and tighter regulation of some industries,” he added. — Beatrice M. Laforga

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



THE DEPARTMENT of Agriculture (DA) approved a suggested retail price (SRP) of P125 a kilo for imported red onions in the National Capital Region...


THE PHILIPPINE ECONOMY could grow by as much as 8-10% if the government can address the gaps in agriculture, investment, and good governance, according...


By Keisha B. Ta-asan, Reporter GLORIA L. JAPON, a 48-year-old public school teacher from Cavite south of the Philippine capital, admits struggling to pay...


GLOBE Telecom, Inc. has signed an agreement to lease telecommunications towers in Southern Luzon to a unit of Thailand-based Sky Tower Plc. to monetize...


A UNIT of listed holding firm A Brown Co., Inc. has secured a P400-million funding for the construction of a commercial electron beam or...


MANILA Water Co., Inc. on Monday said that it would submit its completion plan to build and operate water, sewerage and sanitation projects until...

You May Also Like


Browsing history makes referring to sites and pages you’ve visited in the past seamless. It’ll help you recall what page you checked out on...


The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.