The ongoing conflict between Israel and Hamas militants in Gaza has not affected the Philippine economy yet since the Asian country still has "very little exposure" to the conflict zone, the National Economic and Development Authority said on Friday.

In a Palace briefing, NEDA Secretary Arsenio Balisacan said there had been no major supply chain disruptions due to the conflict and that the impact on oil prices has been negligible.

"I guess the question is whether the conflict will spread, and that is another matter. Because then, if it gets into the supply chain, (it) affects global movements of trade," Balisacan added.

Balisacan also noted that the Philippines has very little exposure to Israel and Palestine regarding labor employment, trade and investment.

"Unless, if that spills into the other countries and it affects the oil supply, then magkakaroon ng impact sa atin," he said. "But as of now, we are not seeing that."

However, Balisacan warned that a protracted war between Israel and Palestine could harm the Philippine economy.

Balisacan said that the Philippine government is closely monitoring the situation and is prepared to take measures to mitigate any negative impact on the Philippine economy.

The International Monetary Fund said earlier that it would be "very closely monitoring how the situation evolves" and how it affects the oil markets.

The IMF's World Economic Outlook, which came out earlier this week but was written before the Israel-Hamas conflict, already expected a slow economic growth worldwide.

The attack on Israel over the weekend by the Palestinian terrorist group Hamas from Gaza has killed thousands of people and shocked the oil markets.

At the start of the war, oil prices worldwide spiked, but have since gone down with supply flows remaining uninterrupted for now.