War in Ukraine & Russia: Will the Philippine Economy and Real Estate Be Affected with this event?

Recent news have been flooding the news, our social media feeds etc about this activities happening in Eastern Europe which is happening now in Ukraine against Russian aggression. Although the Philippines is faraway from the possible conflict, there are 342 Overseas Filipino Workers who have left Ukraine and were affected with the conflicts as they flee for their safety to the Philippines or have settled temporarily in other European countries not affected with the conflict.

Understanding Real Estate Markets & Cycle amidst COVID 19

 

With the current situation of the country and abroad, the global markets have been affected with the COVID 19 pandemic effects to the World Economy. There are current job losses, missed opportunities and money being lost brought about by such health crisis. All industries are dependent on Real Estate Market and are heavily connected with the national economy. In our recent post last February on the Philippine economic outlook for 2020, The Philippines had slowed down and has dipped to -7.3 % based from reports from Asian Development Bank. Contractions have been seen and felt all throughout the closure of the archipelago since March 16, 2020 to June 30, 2020 (Enhanced Community Quarantine) and the post lifting of ECQ to Modified General Community Quarantine in July 2020. A lot of businesses were affected with closures particularly the Micro, Small and Medium Enterprises (MSME) sector, hotel / tourism sector, airline and travel sector. Other sectors have were also affected with this great pandemic which contributed to the negative dip of the world economy in general. These industries are co-existing and reliant with each other and the real estate sector at the same time. In a recent reports from PSA released last month, says "The Philippines records a GDP growth rate of -11.5 percent in the third quarter of 2020".

COVID 19: Effects to the Philippines and The World Economy

Photo by Anna Shvets from Pexels

The world is in total grip towards pandemonium of Coronavirus Infectious Disease 2019 or COVID 19 (formerly Novel Coronavirus 2019). It wreak havoc in mainland China where the source of this infection believe came from in the market of the City of Wuhan, Hubei province, People's Republic of China. Although World Health Organization (WHO) officials mentioned at there is only a 2% chance of the probability for a patient afflicted with such disease die and 98% recovery rate. It still remains a threat to our borders and our national security, weakening the citizenry and stretching the nation's healthcare resources to the maximum. Our country, the Philippines is vulnerable to such pandemic effect of this new disease hitting our shores as we are very close proximity to mainland China with two related deaths of COVID-19 of whom the two casualties were Chinese citizens were reported as this writing.