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| Filipinos in Bristol |
2016 is about to end. There are Filipinos who work and reside in the UK and with the Brexit vote last May 2016, this 2017 may seem to be a year of uncertainty in many aspects. It was an unexpected vote and it turned medium and long term plans awry for Filipinos who reside there.
& months have passed and the whole world was witness to the largest companies lost more than US$200 billion in a matter of days.
While they wait for Article 50 to be finalized with uncertainty, Filipinos here and in the UK wait with bated breathe on what 2017 holds.
Here are several indicators that are crucial:
Remittances
In 2005, the Peso – Sterling Pound Exchange Rate was Php100 = 1 Sterling Pound. The devaluation impacted immediately and after a day the Sterling Pound lost 10% of its value. It is forecasted that a £500 remittance will now be lower by approximately PHP 4,000. This will translate to around PHP 50,000 over 12 months (assuming exchange rates stay at the current rates).
There are 300,000 Filipinos in the UK and the loss of the value of remittances will tell on consumer spending of their dependents here in the Philippines.
Cost of vacations
As with remittances, the cost of vacations by UK based Filipinos would tend to be more expensive for them. A $3,000 trip across the Atlantic to New York will now set them back by almost £300 more. But those planning on visiting Jolly Old England can do it cheaper than before.
Interest rates
As anticipated by many, the Bank of England has further reduced the base rates to 0.25% (from the previous 0.5%, which has been the standing rate since March 2009). While the continuing low interest environment is great for keeping the monthly mortgage payments low for homeowners, it may still be worth exploring the market for even better deals. The losers from this, as we know, are the savers and the pensioners.
Immigration
One critical component of Brexit is that of immigration policy. But there are factors such as the points system would favor Filipinos of professional qualifications. But this can also be counteracted by more points being given to EU national.
Economy
GDP slowdown is expected but not worse than during the 2008 crisis. This will also affect jobs generation since investor confidence on new businesses and expansion will be greatly affected.
Onwards and upwards
2017 is still filled with hopeful signs and indicators though. Large corporate transactions are still taking place and others in the pipeline. London launched the #LondonIsOpen social media campaign wherein London is depicted as a city filled with opportunities for investors and visitors.
The Trump victory is still a factor to be fully analyzed and assessed.
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