US Credit Crisis

Asia’s economic growth will likely be hurt by the slowdown in the United States and Europe, but the impact should be minimal, an Asian Development Bank (ADB) official said yesterday.

SYDNEY — A new global financial crisis would hit Asia harder than the last one, especially nations heavily exposed to offshore markets or still repairing budgets from the 2008-2009 crisis, credit ratings agency Standard and Poor’s yesterday said.

The Department of Labor and Employment is now monitoring the possible impact on overseas Filipino workers of last weekend’s credit rating downgrade on the United States.

PHILIPPINE economic managers on Monday warned that the domestic economy, particularly exports and remittances would slow following Standard & Poor’s downgrade in the US’ credit rating.

THE peso would likely weaken for “a couple of weeks” as the downgrade of the United States’ credit rating continued to roil markets worldwide, but the currency could resume its appreciating trend in the medium-term amid the Philippines’ improving fundamentals, Finance Secretary Cesar Purisima told a Senate hearing Monday.

MANILA: Government officials here both from the present and past administrations have expressed grave concern over the impact of the credit rating downgrade in the United States on the Philippine economy.

Nervous sell-offs in Asia’s equity markets in response to debt problems in the United States and euro zone underscore the region’s growing links to financial events on the other side of the world. But with increased integration comes the increased threat of contagion. It is therefore not only in Asia’s interest to promote global financial…