The anticipated slump in the US economy will hurt the country’s export industry and dampen and cause the local economy to slowdown, economists, government officials and business leaders agree.

To what extent the US weakness would pull the local economy is where their opinions differ.

University of the Philippines economist Benjamin Diokno believes that aside from weakening exports performance, the US slump will even dampen remittances from overseas Filipinos, among others.

“The direct effect would be through slower exports, lower overseas remittances from overseas Filipinos in the United States, and slower portfolio investments. The housing and credit crises in the United States could have a negative impact on the local high-end housing. With the housing slump and credit crisis in the United States, expect some problems in the local construction industry and bank lending,” he said.