Disappointing GDP Results Cause Philippine Peso to Slip

On Tuesday, the trading price of the Philippine peso fell tremendously. Its value ended up experiencing the worst downward movement compared to the rest of the fiat currencies on Tuesday.

The reason why the Philippine peso performed worse than its Asian peers was due to below-expectation GDP growth. Philippine’s GP growth was not as much as the economists had expected it to be in the first place.

Philippine Peso’s Bad GDP Growth

The Philippines as well as the international economists had expected that the Philippine GDP would grow significantly. However, GDP growth reported for the second quarter was lower than the expected GDP growth.

On the other hand, the currencies of the majority of countries in Asia experienced slight surges in their values. This happened following the posting of employment data that has triggered a rise in the inflation rates.

PHP/USD’s Value Drop

The data from the recent forex trading sessions show that the value of the PHP fell by 0.4%. Following the dip, the trading price of the PHP/USD pair came down to 55.585.

This shows that the value of the Philippine peso has experienced a significant drop, and it is all thanks to the GDP results that were below expectations.

Philippine’s Economy Figures

The report shows that in the second quarter, the economy of the Philippines grew by 7.2%. Unfortunately, the economic growth was not up to the estimations made by the analysts.

The expectation for the economic growth estimated by the analysts for the second quarter of 2022 was 8.6%. Despite falling below the analysts’ estimations, the actual GDP growth was within the official growth target of the Philippines.

Central Bank’s Decision

Although the GDP growth was within the country’s GDP growth target, still, failing to meet the analysts’ expectations puts the central bank in a difficult situation.

Considering the recent results, the central bank of the Philippines will need to lower the magnitude with which it was increasing the interest rates.

The central bank of the Philippines will need to slow down in hiking the interest rates to deal with increased inflation rates for the running year.

The rise in Inflation Rates

According to data, the inflation rate hike recorded in the month of July was higher than the expectations of the economists. The CPI inflation in the Philippines has also grown more than the expected growth.

The data shows that the economic situation in the entire Southeast Asian region is going to suffer. The inflation rates in the Southeast Asian region are likely to spike and greatly impact the economy.

Other currencies such as the Australian dollar, the Japanese yen, and the Chinese yuan have experienced 0.1% movement either on the positive side or the negative side.

Leave a Reply

Your email address will not be published.


Yields In the Eurozone Rise a Little as Attention Turns to ECB Minutes

Investors await the minutes from the European Central Bank meeting conducted in September. Seventy-five basis points were raised for each of the three primary interest rates set by the ECB. This took place at the specific policy meeting. Investors Await Clues on The Next Monetary Policy Tightening Additionally, the investors said that they expected future […]

After The Best First Quarter Since 1938, U.S. Stock Futures Fall

The Dow DJIA, +2.80%, increased by 825 points on Tuesday. The rise translates into a 2.8% gain. S&P 500 SPX, +3.06% had a 3.1% gain. A 3.3% increase was seen in the Nasdaq Composite COMP, +7.79%. Just What Is It That’s Propelling Markets Forward? Futures on stock indices have experienced some selling. A significant increase […]

The United States Government Has Called for Crypto Regulation

Experts and government officials have pinpointed the dangers that come with digital assets. U.S. authorities have warned that digital assets pose a security risk in a recent study. These dangers threaten the stability of the American financial system.  The Study Contends Unless “Proper Regulation” Is Put in Place On March 9, 2022, President Joe Biden […]

Possibility Of a Crypto and Financial Markets Collapse

The market may have seen the arrival of the black swan that nobody saw coming. Credit Suisse is a central global investment bank. There is a real possibility that the bank may collapse, which would lead to a catastrophic market meltdown.  The crypto and finance sectors triggered the conversations that led to this. What Is […]

A New Report Finds EU Sanctions Will Limit Russian Use of Europe’s Crypto Services

These events are occurring while the situation in Ukraine continues to worsen. Earlier this year, the EU restricted only “high-value” crypto-asset transactions to individuals and businesses in Russia. The current sanctions are likely to become more severe for the Russian Federation. EU Sanctions Over Ukraine May Target Russian Crypto Services The EU is getting ready […]