Brexit has no significant impact on PHL – PCCI

The results of a historic referendum that showed Britons prefer to leave the European Union has no significant impact on the Philippine economy, according to the Philippine Chamber of Commerce and Industry (PCCI).

"Britain has voted to leave the European Union, the BBC said based on voter tallies from Thursday's referendum," according to a report by Reuters.

"I do not think there will be any big impact towards the Philippine economy. Remember, we still do not have any free trade agreement with the EU, therefore no changes in our trade with Britain," Donald Dee, honorary chairman and COO of PCCI, said in a text message to GMA News Online.

Similarly, PCCI chairman Sergio Ortiz-Luis noted in a televised interview that the results of the EU referendum will not affect the country in a traumatic way.

"It will affect generally our European market, he said."We have to remember also Britain is one of the biggest investors in our country – that won’t change.

"If it affects the relations in other EU countries... I think there will be a danger that we will be affected."

According to the British Chamber of Commerce Philippines, bilateral trade between Britain and Philippines is around $2 billion a year.

Guain Dumalagan, market economist at the Land Bank of the Philippines, noted the exit of Britain from the EU may fuel concerns about the global economy and increase market volatility.

"The exit of Britain may weigh down on local stocks, as it could prompt investors to avoid riskier assets in favor of safer ones," Dumalagan said.

But the impact of Brexit on Philippine shares might be temporary given the minimal trade volume with the EU.

"As far the dollar/peso exchange rate is concerned, it may initially show bias in favor of the dollar due to safe-haven buying," Dumalagan said.

"Over time, however, the exit of Britain may support the peso by potentially tempering the rise in US interest rates," he added. – VDS, GMA News