A slowdown of the US economy could directly impact the Philippines via two key areas: (1) the country’s export receipts; and (2) remittances from overseas Filipinos. The Philippines is not immune to a US slowdown, although there are factors that may limit any adverse impact.
For instance, although the US is still one of the country’s top trading partners, US dominance in Philippine trade has diminished. The share of Philippine exports to the US decreased from 30 percent in 2000 to 17 percent in 2007. The IMF has also found that the sensitivity of Philippine growth to US growth has declined overtime. However, the sensitivity is still palpable.