In our view, if the state of emergency is short-lived, then it should not have a measurable impact on economic activity and thus preserve the gains from the fiscal reform effort, which is the cornerstone of the positive view toward the Philippines. |
In the early part of 2005, people were talking about the Philippines being the next Argentina. People aren't talking about that scenario anymore. |
The worst-case scenarios have effectively been removed. |
We think that foreign buying, which has been a key support for the market, may dry up until the state of emergency is lifted. |