Government to prepare for global impact on economy of Japan's crisis — Aquino

March 21, 2011 11:17 pm 

MANILA, March 21 — President Benigno S. Aquino III assured that the government will put in place contingency measures for the country to be able to cope with the global impact of the powerful earthquake and tsunami that hit Japan last March 11.

In a press briefing on Monday at Malacanang after he formally launched the Public-Private Partnership on Labor Governance at the Heroes' Hall, the President said the Japan twin disasters will definitely have an effect on the country’s economy.

He said his economic team is now studying the effects of Japan’s economy falling out on the country.

“I was informed by the economic team that we will be guided (by the study) as to how we will cope with the fall of one of the world’s biggest economies, one of our biggest official development assistance (ODA) sources and one of our biggest trading partners,” the President said.

“The directions that we will take after the study will tell us exactly what needs to be done so we can cope with this development that has happened,” he added.

Some of the country’s economists have said that the government should look for other loan and financing alternatives as Japan gears for a massive reconstruction of its economy.

Reports said that reconstruction in Japan may take at least 10 years and a lot of spending.

With this development, economists foresee Japan’s ODA to the Philippines declining and investments in infrastructure development taking a standstill.

At least 33 percent of the country’s ODA portfolio comes from Japan. (PNA)

DCT/scs/PCOO/utb

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