Economic crisis: Some significant statistics
Drop in investments
Investments in public and private companies in the economic zones dropped 57% in the first 11 months of the year. It is at its lowest level since 1996. Only $1.3 billion in foreign direct investments were registered in the first nine months of the year from $1.7 billion the same period last year. Meanwhile, capital flight reached $2.9 billion as of end-September.
Drop in production
In October, manufacturing dropped 10.1% compared to October 2000. This is the seventh straight month that manufacturing posted a drop. Production has plummeted because of the steep decline in domestic consumption and demands of the export market. Worst hit by the drop in production are petroleum products, beverages, steel and other mineral products, paper and paper products, rubber products and others. Production is only at 75.9% of capacity. More than 40% of enterprises utilize less than 70% of manufacturing capacity.
Closure of enterprises
As of October, 2,294 firms have closed down. This is 20% more than the previous year.
Drop in exports
Income from exports dropped 14% from January to October compared to the same period last year.
Unemployment
In the first 10 months of the Macapagal-Arroyo regime, up to 111,080 workers were laid off permanently. This is 16.3% higher compared to the same period in 2000. Fourteen percent (14%) of these workers were laid off only in the month of October. At the same time, in the first 11 months of the year, 54,549 workers were temporarily laid off, subjected to job rotation or had reduced working hours.
The widespread job dislocation is due to the drop in the market, reorganization, downsizing and losses of 2,294 companies since the terrorist attacks in the US on September 11. (See related article on unemployment)
Budget deficit
The government's budget deficit is expected to exceed the P145 billion targets for 2001. By September, the target had already exceeded P1.95 billion. In 2000, the budget deficit reached P120 billion. It is expected to further skyrocket to P175 billion in 2002. Because of this, the government has reduced its expenses by 3.5% in the third quarter, causing a further slowdown in the economy.
Trade deficit
As of September, Philippine exports dropped 22%. Exports of electronic products dropped 22.3%; garments and textile, by 4.4%.
Debt
Because it could not resort to anything else but further borrowings, the government debt increased by P286 billion in the first nine months of the year, 14% higher than P2.035 trillion in 2000.
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