THE BANGKO Sentral ng Pilipinas said the economy would likely fall short of the government’s target of 7 to 8 percent this year due to prevailing unrest in some oil-producing countries and the impact of the disasters in Japan.
“The projection (7 to 8 percent growth) was made prior to the events in the MENA (Middle East and North Africa) region, and the disasters in Japan,” BSP Governor Amando Tetangco Jr. told reporters on Friday.
“We shouldn’t be surprised if growth will be lower than the projection.”
Before the political turmoil in the Middle East and North Africa and the earthquake in Japan, which triggered a tsunami and nuclear meltdown of an atomic facility, the Philippine government had said that it saw no need to change its growth target for this year.
But events overseas have since prompted the BSP to acknowledge that there could be a shortfall in growth this year.
Global oil prices have been rising due to the political unrest in the Middle East and North Africa, and this is expected to somehow dampen spending for non-oil and non-essential products.
The disaster in Japan may also lead to lower-than-expected Philippine exports this year.
Tetangco stressed, however, that the adverse impact of the events abroad would only be felt this year.
He said growth of at least 7 percent could again be attainable in the years ahead.
“The impact is on the short term; the medium and long-term projection is positive [as far as hitting the 7 to 8 percent target is concerned],” Tetangco said.