Philippines Faces Economic Crisis Amid Middle East Conflict
How Philippine economy is badly hit by war thousands of kilometres away
Image: Khaleej Times
The Philippine economy is suffering due to rising inflation linked to the Middle East conflict, with over 81% of families classified as poor or low-income. The government’s limited relief measures are insufficient to prevent more Filipinos from falling into poverty as prices soar.
- 01Over 81% of Filipino families are classified as poor or lower-income, with many earning less than P22,000 (approximately $400) monthly.
- 02Inflation in the Philippines has surged to 7.2%, the highest in three years, driven by increased costs in food, transport, and utilities.
- 03The government’s cash aid programs, like the Unified Package for Livelihoods, Industry, Food and Transport (Uplift), provide limited assistance to only a fraction of those in need.
- 04Economic growth slowed to 2.8% in the first quarter, with weak job generation and stagnant wages exacerbating the crisis.
- 05Economists urge the government to implement substantial relief measures, including tax suspensions and stronger price controls, to prevent more families from slipping into poverty.
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The ongoing conflict in the Middle East has severely impacted the Philippine economy, leading to a significant rise in inflation, now at 7.2%, the highest in three years. This economic strain has left over 81% of Filipino families classified as poor or lower-income, with many households earning less than P22,000 (approximately $400) monthly. The government, led by President Ferdinand Marcos Jr., has opted for limited relief measures such as subsidized rice and cash aid, but these efforts are deemed insufficient by economists. The Unified Package for Livelihoods, Industry, Food and Transport (Uplift) program has only reached a small percentage of those affected, with many vulnerable families receiving no assistance at all. As inflation continues to erode household incomes, experts warn that lower-middle-income families are at risk of falling into poverty. They advocate for more substantial government intervention, including tax reforms and increased subsidies, to address the economic challenges facing millions of Filipinos. Without decisive action, many families could find themselves on the brink of poverty.
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The economic crisis is pushing many Filipino families closer to poverty, with rising prices affecting their ability to afford basic necessities.
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