Cite a situation in the history of the world economy where Philippines has experienced economic

crisis.

Unbeknownst to many, the 2008 GFC (Global Financial Crisis) instigated the failure of
various businesses that eventually led to significant declines in economic activities around the
world. During this time, a downturn in the U.S. housing market became a vehicle for a financial
crisis that spreads from the United States to the rest of the world through linkages in the global
financial system—and that includes the Philippines. As we all know, the USA has been
consistently the major trading partner of our country. According to what I read, Diokno (2009)
said that the implication of the collapse of the economy of USA has affected the economy of the
Philippines in three huge ways: decline in output or GDP, remittances of OFWs have slowed,
and foreign direct investments have also declined. Saddening to say that recoveries during that
time were also much slower than past incidents that were also associated with a financial crisis.