PH economic team sees minimal impact from Middle East conflict

The Philippine economic team assesses that the ongoing Middle East conflict has a minimal impact on the country's economy, with a caveat that this assessment holds as long as global oil prices do not surge or the conflict does not worsen.

Department of Energy Officer-in-Charge Sharon S. Garin quoted Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan in stating the situation is not alarming at present.

President Ferdinand R. Marcos, Jr. has ordered economic managers to protect Filipinos, particularly public utility vehicle users, farmers, and fishermen, from potential oil price hikes.

Analysts, however, noted that another surge in global oil prices could trigger a renewed spike in inflation in the Philippines, as the country is a net importer highly sensitive to such fluctuations.

A 10% oil price shock is estimated to contribute 0.3-0.4 percentage points to the Philippines' headline consumer price index, according to Fitch Ratings.

Despite minimal economic impact assessment, the Philippine government has raised Alert Level 3 in Israel and Iran and is actively repatriating Filipinos from these areas.