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Philippine economy faces growth threats in 2012

MANILA, Philippines — The Philippine economy is facing major risks from abroad that could limit its growth prospects next year, the central bank governor said Wednesday.

Although the country enjoys “sound macro economic fundamentals,” and strong domestic demand, the economy could still be hurt by developments in Europe, the United States and China, central bank governor Amando Tetangco said.

“The 2012 global economic outlook has deteriorated,” he said, warning that there would be more volatility and uncertainty that could affect the Philippines.

“Although economic growth has slowed, we have not seen a contraction” in 2011, he told a forum of foreign correspondents.

The economy grew by 3.6 percent in the first nine months of the year, though the government maintained its full-year target of 4.5-5.5 percent, pinning its hope on a $1.66 billion state spending program launched in October.

Next year’s official growth target is 5-6 percent.

Tetangco said fears of an escalating debt crisis in Europe, the continuing weak US labor market and the risk of a slowdown in China could weigh on Philippine growth prospects in 2012.

They could result in a drop in trade, investment and official aid, he said, warning that even earnings from the country’s booming outsourcing industry and the remittances of nine million Filipino workers overseas could be affected.

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Tags: Business , economy , Growth , Philippines

  • tristan mendoza

    More bleak news for the Philippines.
    Parang sinumpang bansa na yata tayo.
    Kaya di mo masisi ang karamihan ng kababayan nating gustong mag-ibang bansa.
    Mas gugustuhin pa nilang maging alipores doon kaysa mabuhay dito.
    Can’t we get some good news for a change?

    • Anonymous

      THe good news will come in 5 years.  Just be patient.

      • tristan mendoza

        Unfortunately, 93 Million Filipinos and their hungry stomachs can’t wait that long.

  • Ricci Santiago

    napanaginipan ko na ito, at madalas kong sabihin sa iba na maghigpit ng sinturon…
    mag ipon, pray, hope for the best

  • http://pulse.yahoo.com/_E3CE56OQVPC4RPYD2NR4VD3SUE Bert

    The PHILIPPINE ECONOMIC DOWNFALL is the shortest formula for PNOY’s EARLIEST DOWNFALL. He should better take serious measures in addressing the economic problems of this country if he intends to finish his 6 years term. Enough with too much POLITICKING, he’s already president and he should now divert his energies on how to invite investors and improve the economic status of every juan de la cruz….

    • Anonymous

      But he doesn’t know how.  All he knows is POLITICKING

  • http://pulse.yahoo.com/_OU7SK6GZUFTWNXC5VVAVWMOM2A Advice

    Tataas 4sure ang US$ dollar, babalik sa over P50.00+ FOR SUREEEE!

    Wawa naman mga pinoys. Ito ang resulta ng curakot ni Marcos, Ramos, Erap
    and GMA admins at mga contemporary gov officials nila just to mention Enrile, Abalos,
    Tatad, Chavit Singson, at marami pang ibaaaaaaaaa.

    Pinas needs to overhaul the political landscape much faster and I’m glad at least Pnoy has initiated it yet it may take sometime for Pinas to catch up even b4 prosperity and self-reliance get into the equation.

    • Anonymous

      @yahoo-OU7SK6GZUFTWNXC5VVAVWMOM2A:disqus kailangan mo ng economic at guidance counselor. Wala kang tamang na e-advice.

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