The debt service ratio (or the amount of principal and interest payments due relative to exports of goods and receipts from services and income) has droppedfrom 15.7 percent in 2001 to only 8.4 percent by November 2011, or less than 10 cents per dollar of income. By all indicators, therefore, the Philippines is well-positioned to adopt these changes.
Measures of future activity, however, have remained positive, and September was stronger than August, suggesting that firms expect activity to pick up over the next six months. Nevertheless, the volatility in the financial markets over the last few months has contributed to sharp declines in business and consumer sentiment.