MANILA, Philippines – The United Kingdom’s decision to leave the European Union will affect – “without exception” – all countries in varying degrees, outgoing Finance Secretary Cesar Purisima said on Friday, June 24.
While the Philippine economy has good fundamentals that would insulate it from Brexit’s immediate effects, Purisima said this “should not lull us into overconfidence.”
Purisima acknowledged that “the world has entered uncharted waters” with the UK’s exit from the EU. “Its immediate repercussions will roil the global financial markets and affect all countries, without exception but with varying degrees,” he added.
Purisima cited the Philippines’ strong domestic consumption that would protect the country from the financial turmoil in other countries as a result of the UK vote.
“The Brexit has no direct effect to our debt structure, as national government debt is denominated mainly in local currency (PHP – 67%) with the rest made up of the US dollar at 26%, Japan Yen at 5%, and the Euro at a small 1%,” Purisima stressed.
Lured by the promise of regaining control of their own destiny and reining in high levels of immigration, Britons chose to break from a 28-nation alliance that has offered unfettered trade access and the free movement of labor across its borders.
UK Prime Minister David Cameron already announced he will resign after Britons voted to leave the European Union despite his campaign to keep it in the bloc.
Cameron promised to try to “steady the ship” over the next months and did not give a precise timetable for his departure but said a new leader should be installed by early October. – Rappler.com