A grim word is beginning to circulate in discussions of the Philippine economy: stagflation. Strictly speaking, the country is not there. Growth has slowed sharply and inflation remains uncomfortable, but unemployment is not too high and output continues to expand.
A better description is less dramatic but still worrying: The Philippines is passing through a stagflation-lite moment.
Classic stagflation combines three ills at once: high inflation, weak or negative real growth and high unemployment.
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The Philippine version is milder. Inflation has pinched households; growth has lost momentum; and investment has faltered, but the labor market has not collapsed.FEATURED STORIES
