NEDA says ‘growth story’ remains valid

AFTER Standard and Poor’s (S&P) kept its junk credit rating on the Philippines, the National Economic and Development Authority (NEDA) asked investors to continue believing in the government.

“The Philippines is still a growth story. Our message today for investors is for them to continue to believe in the Philippines and invest in the Philippines,” Socioeconomic Planning Secretary and NEDA chief Ralph Recto said in a statement.

Recto said the government will remain vigilant as it continue to take whatever action is needed to further strengthen the country’s growing economy.

“The message of S&P’s affirmation of the Philippines’ credit ratings and the stable outlook on the ratings is that the country is relatively resilient to the global financial crisis,” he said.

S&P earlier affirmed the Philippines’ “BB-” long-term and “B” short-term foreign-currency sovereign credit rating.

The rating company also affirmed the “BB+” long-term and “B” short-term local-currency credit score on the country.

S&P bestowed a stable outlook on these ratings.

NEDA Deputy Director General Rolando Tungpalan, who is also presidential economic spokesperson, noted the “S&P saw the tough economic decisions and the appropriate economic policies adopted by the Philippine government.”

“These are what enabled the country to post growth and remain resilient amid the global economic downturn. We are working even harder now to sustain growth and create more jobs for our people,” Tungpalan said.

He said that S&P believes that the Philippines will continue to be a growth story.

In its June 2009 Asia Pacific Sovereign Report Card, S&P forecasted a 1.3-percent growth for the Philippines this year which is well within the government’s 0.8- to 1.8-growth forecast, Tungpalan said.

“In fact, of the 21 countries mentioned in that report, only 9 countries are projected to post positive growth rate this year and the Philippines is one of them,” he said.

The other countries in the Asia Pacific region that were projected to post positive growth in 2009 are China, India, Indonesia, Mongolia, Pakistan, Papua New Guinea, Sri Lanka and Vietnam.  –Darwin G Amojelar, Manila Times