Covid 19 Philippine Recession

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JJReyes
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Ayala Chairman and CEO Jaime Augusto Zobel de Ayala is predicting a Philippine recession.  Zobel de Ayala believes this recession will last until around the end of 2021.  No Philippine government agencies reporting on this issue at this time or they already have projection but they haven't been released.  From forum members, I would like to know your financial strategy assuming the recession is short.  Personally, I think it will be longer because Overseas Filipino Workers (OFWs) were sent home due to Covid 19.   Rehiring them will take time.

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Dave Hounddriver
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I remember back in 1980 there was a very large recession in Canada.  The ones who did extremely well were the seniors with savings.  The interest rates went up and the prices went down.  A lot of expats in the Philippines are in that situation.

It's an ill wind that blows nobody any good.

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OnMyWay
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6 hours ago, Dave Hounddriver said:

I remember back in 1980 there was a very large recession in Canada.  The ones who did extremely well were the seniors with savings.  The interest rates went up and the prices went down.  A lot of expats in the Philippines are in that situation.

It's an ill wind that blows nobody any good.

Yes, but exchange rate is key too!  Right now the dollar has been sinking.

I exchanged a few weeks back at something like 50.06 and of course the rate shot up to almost 51 the next week.  Now it is down to 49.86.  I hope it is not headed lower.

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hk blues
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21 minutes ago, OnMyWay said:

Yes, but exchange rate is key too!  Right now the dollar has been sinking.

I exchanged a few weeks back at something like 50.06 and of course the rate shot up to almost 51 the next week.  Now it is down to 49.86.  I hope it is not headed lower.

Yep...as ex-pats we have to keep one eye on our home country economy and our host country too - both in terms of interest rates and exchange rates.  

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RBM
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11 hours ago, JJReyes said:

Ayala Chairman and CEO Jaime Augusto Zobel de Ayala is predicting a Philippine recession.  Zobel de Ayala believes this recession will last until around the end of 2021.  No Philippine government agencies reporting on this issue at this time or they already have projection but they haven't been released.  From forum members, I would like to know your financial strategy assuming the recession is short.  Personally, I think it will be longer because Overseas Filipino Workers (OFWs) were sent home due to Covid 19.   Rehiring them will take time.

My financial strategy does not really change, although prices have increased where we live we are spending less.

Spending more time at home as the SO is into cooking baking, the peso is showing  recent signs of weakness  against the kiwi which also helps.  

Due to the coming recession plus large numbers of OFW returning I am puzzled how all the thousands of so far unfinished condos will be sold.Maybe the Chinese will fill the gap. This am I was in a very popular mall, expected it to be busy but hey.....ghost mall.

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scott h
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19 hours ago, JJReyes said:

From forum members, I would like to know your financial strategy assuming the recession is short. 

will really have little effect on me. When we moved here the rate was 41, and our SS kicked in. Maybe we will have some deflation :SugarwareZ-005:

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GeoffH
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The Aussie dollar dipped badly leaving my exchange rate at 29 pesos to the AU$ but it's back up to 35 to the AU$ which is about mid range (I've seen it just over 40 and just under 30) so I'm ok for now (whc knows what the currencies will do in the longer term, not me for sure).

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Balisidar
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I hate to wish ill on anyone but you have to jump on opportunity when it occurs. In this time that we are looking to relocate to the Philippines my wife and I will be looking for a bargain on a house and some land.  We are counting on an adjustment to the Philippine real estate market given the rate of OFW unemployment.

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scott h
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2 minutes ago, Balisidar said:

bargain on a house and some land.

where abouts?

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Balisidar
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1 minute ago, scott h said:

where abouts?

We aren't totally sure yet but it will be either the Tagaytay area, Lipa city or San Pablo.  We love all those areas.

Regards 😀

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