MANILA, Philippines – The National Economic and Development Authority (NEDA) expressed optimism that this year’s target growth rate of 3.1 to 4.1 percent could still be attained now that there are indications that the global financial crisis is bottoming out.
NEDA deputy director general Rolando Tungpalan, speaking to reporters after the Cabinet meeting in Tacloban City yesterday, said that a number of the major economies have started to pick up, including regional giant China.
Being a huge market in the Asian region, Tungpalan said China has ready credit to assist its partners and neighbors and has a substantial amount of funds that could be used to invest in countries like the Philippines.
“The bottom line here is our report indicated, as said by different sources in US, Europe, Asia and the like, that there seems to be growing consensus of the bottoming out of the recession,” he said.
“The good news is that in the case of a big economy like China, we have cited in our report that it has picked up very strongly and its growth has demonstrated that the stimulus package of China has resulted in positive gains,” he added.
Recalling the forecast made by the International Monetary Fund (IMF) that the Philippines would register zero growth this year, Tungpalan noted that the assumptions used by the institution were far from what was actually being registered in the country.
The IMF expects overseas Filipino workers’ remittances to contract this year, but he noted that the February figures already showed a five percent growth in spite of the slowdown in the world economy.
He said the deployment of Filipinos overseas also grew by 30 percent in February.
It was previously reported that there were around 6,000 workers displaced because of the global financial crisis.
However, Tungpalan noted that around 3,000 workers leave the country on a daily basis to work overseas, so “two days of deployment would easily offset displaced workers.”
“This would give us a sense of confidence,” he said.
He also cited developments in the country that have bolstered the confidence of economic planners on reaching the growth targets for this year.
Tungpalan said that the semiconductor industry, which was one of the sectors hit hardest by the global financial crisis, expects a rebound.
He also took note of the disclosure made by SM Development Corp. that it would roll out four new projects worth P15 billion this year.
The company’s officials said they were bullish about the economy, hence the decision to make more investments at this time.
“Therefore, we remain very hopeful. We still maintain our 3.1 to 4.1 percent growth target. But being sensitive to global events as we did this morning, we are prepared to adjust either upward or downward as evidence may arise,” Tungpalan said.
“As the President said this morning, let us be prepared for the worst, but also be prepared for the best,” he added. –Marvin Sy, Philippine Star
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