Weak Philippine peso sparks revival in local manufacturing sector
A sharp decline in the Philippine peso is making exports cheaper, giving the country's manufacturing industry a new boost, according to HSBC analysts.
The Philippine currency has fallen to consecutive record lows, which HSBC says could improve the competitiveness of Philippine-made goods abroad. Senior ASEAN economist Aris Dacanay highlighted the potential for export growth, but warned that sustained gains will depend on controlling inflation and reducing logistics expenses. The outlook suggests a possible turnaround for a sector that has been stagnant for years.
Why it matters
A cheaper peso could lift Philippine exports, helping the economy recover and create jobs.
In this story
Philippine pesomanufacturing revivalexport competitivenessinflationlogistics costsHSBC analysis
