WORLD> Govt Reaction
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WORLD> Govt Reaction
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Philippines cuts growth target with bailout failure
(Xinhua)
Updated: 2008-10-01 16:50 MANILA -- The Philippine government on Wednesday scaled down its forecast of the country's economic growth in 2008, influenced by the rejection of a bailout package aimed to revive the ailing American economy in the US House of Representatives. The revised Philippine economic growth, measured through the rise in gross domestic product (GDP), is seen at 4.4 percent to 4. 9 percent for this year. The original growth pace was pegged at 5. 5 percent to 6.4 percent, local news network GMA News reported. Economy in 2009 may grow by only 4.1 percent to 5.1 percent, a sharp drop from 6.1 percent to 6.9 percent projection earlier this year. "The economic managers have accepted my suggestion to revise the Philippine economic projections downwards in the light of recent global developments," Socioeconomic Planning Secretary Ralph G Recto was quoted as saying. He said it seems inevitable for the US economy to slip into recession and it will have "an effect on the global economy." The US is one of the largest trading partners of the Philippines. Latest government statistics also show that 9.3 million Filipino are currently working in the States, the report said. It is the second time this year for Philippine government to downgrade its growth rate from the original 6.3 - 7 percent projection. The Philippine economy grew 7.3 percent in 2007, the fastest annual growth in three decades. Philippine President Gloria Macapagal-Arroyo on Wednesday said her administration was "working hard" to contain inflation, strengthen the banking system, sustain economic growth, and improve the country's fiscal health. "These are hard times. The government is averting the effects of a global economic slowdown brought about by the volatile economic situation," on-line news network INQUIRER.net quoted her as saying at the opening of the Masskara Festival in central Philippine city of Bacolod. |
