The Philippines is expected to still hit its growth target this year despite the slowdown in the economic growth of China, one of the country’s biggest trading partners.
According to Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr., even if economic growth in China slows to 7.5 percent this year from 9.2 percent in 2011, the pace of expansion is still significant enough to shore up earnings of exporting countries like the Philippines.
“A 7.5-percent growth is still respectable. We don’t see any significant impact of the slowdown on the Philippines,” Tetangco said Thursday.
The Philippine economy—as measured by gross domestic product—is expected to grow by 5 to 6 percent this year, faster than last year’s 3.7 percent.
The National Economic and Development Authority (NEDA), meanwhile, said the slowdown in China will actually benefit the Philippines.
According to NEDA Assistant Director General Ruperto Majuca, China is bracing for a slowdown mainly because of the shift in its growth strategy, from one based on investments and exports to one driven by consumption.
“China wants its growth to be more consumption-led. China may slow down, but because of its intention to increase consumption, and therefore imports, there will be an opportunity for us [Philippines] to sell more goods to it. On a net basis, China’s slowdown will, therefore, be positive for us,” Majuca said in a press briefing.
China is one of the Philippines’ biggest export markets.