Philippine economy faces growth threats in 2012
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.
Get Inquirer updates while on the go, add us on these apps:
Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City,Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94