Discussants:
Mr. Alexander C. Escucha, China Bank First Vice President
Mr. Bert Hofman, World Bank Country Director for the Philippines
By almost all accounts this is the worst financial crisis since the Great Depression and it may end up being the worst economic crisis since that time as well. As of March 2009, the United Kingdom, Japan, and the United States have suffered absolute declines of -1.9%, -4.3%, and -6.2%, respectively, in their gross domestic product. Other countries, such as Iceland and Spain have suffered similar if not worse fortunes. There are indications that things will get worse before they get better.
How did it all start? How seriously is the Philippines affected? How will we get out of it? The center of the battle for recovery is the United States. Only time will tell how long it will take for the recovery to finally take root. But it is useful to explore the conditions—international and national— required for this to happen.