German factory orders rebounded partially in August, a sign that the country’s crucial manufacturing sector may be stabilizing as it suffers from a global economic slowdown and higher interest rates [2a5a8c90]. Demand increased 3.9%, surpassing economists' expectations. Germany’s economy, which has been the euro zone’s weakest link, is projected to shrink this year due to waning demand for goods and services. In August, exports dropped by 1.2%, more than anticipated. German manufacturers are also grappling with challenges such as the war in Ukraine, an aging workforce, and dependence on China. However, there is an opportunity for the German economy to regain its technological leadership through the green transition. The country's long-term potential growth will depend on how it addresses its structural challenges [2a5a8c90].
A recent survey in the Philippines revealed that 48% of Filipino families classified themselves as 'poor' in the third quarter of the year. Controlling inflation remains the most urgent concern for the majority of Filipinos, followed by increasing worker pay, creating more jobs, reducing poverty, and fighting corruption. Policymakers, the business community, and other stakeholders need to work together to address economic challenges. Shifting to a more investment-driven economic growth, particularly in the manufacturing sector, can generate jobs and lay the foundation for sustained national prosperity. The government should support the manufacturing sector by providing training opportunities, incentives, and developing economic zones. A stable policy environment and collaboration through public-private partnerships can attract investments. Encouraging manufacturing activities for the domestic market can offer accessible goods to the expanding consumer base and strengthen the nation's food security and position in the global supply chain. Trade and investments can generate jobs, boost productivity, ensure income security, and strengthen the country's position in the global market [f4d1c123]. According to a survey commissioned by think tank Stratbase ADR Institute, 74% of Filipinos want the Philippine government to strengthen its economic ties with the United States and Japan. The survey also found that 55% want stronger ties with Japan and 46% want the same with Australia. The majority of Filipinos believe that the private sector plays a crucial role in ensuring economic security, with 70% agreeing that it is instrumental in providing a stable source of income and meeting basic needs. When asked how the private sector can contribute to economic security, the majority mentioned making goods more affordable and accessible to Filipino consumers, creating jobs, and expanding livelihood opportunities. [4b957289].
The Philippine Exporters Confederation Inc. (Philexport) predicts that the country's exports could grow by 5 to 6 percent in 2024, with the electronics sector as the main driver of growth. Philexport Chairman George T. Barcelon believes that the electronics sector, particularly in the US, is expanding and will push up export numbers. The Semiconductor and Electronics Industries of the Philippines Inc. (Seipi) has revised its projection for 2023, expecting a decline of around 9 to 10 percent in exports. Barcelon also mentioned that other export sectors, such as furniture, have been performing well. He anticipates a rise in exports next year after a decline of 7.8 percent from January to October 2023 [5a41a559].
The Philippines' reliance on agriculture and lack of a factory economy can be traced back to colonial policies imposed by Spain and the United States. The country's industrial base is smaller compared to other Asian economies due to the lack of large-scale land redistribution. The dominance of wealthy families in the agricultural sector and the lopsided distribution of land contribute to poverty and hunger in the country. The article highlights the case of plantation workers, such as Rodino Sawan, who face low wages and job insecurity. Indigenous tribes, like the Manobo, have also been displaced from their land by powerful families. The colonial legacy of economic policies, including the pegging of the peso to gold, has hindered the development of a strong manufacturing sector. The lack of nonfarm jobs and land redistribution has prevented the creation of a middle class in the Philippines. [aabc842f].
Spain's economy has experienced a permanent shift towards international trade and exports following the financial crisis. The number of firms engaging in regular cross-border trade has grown almost 30% over the last decade. Services exports, including engineering, IT, and cultural services, have seen significant growth. The trade performance has helped correct long-term imbalances, with the current account back in surplus and non-tourist goods and services also posting a surplus. However, Spain still faces challenges such as high unemployment, weak productivity, and below-average GDP per capita. The country is relying on government support and EU recovery aid to address these issues and boost the economy [f5cb4746].
An independent report by Strategy&, part of the PwC network, reveals the economic impact of the Eurofighter Typhoon program in the United Kingdom, Germany, Italy, and Spain [55edddc3]. The report examines the development, production, and support activities of the program in these four core nations. The 'base scenario' shows that the program is set to contribute to the GDP of the four core nations' economies, generate tax revenues, and support 62,700 jobs annually for the next decade. The 'growth scenario' shows even higher numbers with opportunities for sales of approximately 200 Eurofighter Typhoons. The report also highlights the contribution of the program to the four core nations throughout the operational life of a single Eurofighter Typhoon aircraft. Giancarlo Mezzanatto, CEO at Eurofighter Typhoon, emphasizes the economic benefits of the program and the importance of new orders to sustain and retain defense industry production assets in Europe.