The Philippines has suffered some of the heaviest portfolio outflows in Asia, according to a report by Philstar Biz citing Moody's Ratings.
The outflows are attributed to the country's heavy reliance on imported energy, which makes it vulnerable to the ongoing Middle East conflict. Moody's noted that rising oil prices and geopolitical tensions have exacerbated capital flight from emerging markets, with the Philippines particularly affected due to its energy import dependency.
The report highlights the broader impact of the Middle East crisis on Asian economies, with the Philippines facing one of the steepest declines in foreign portfolio investments. Analysts suggest that continued instability could further strain the country's financial markets and currency.