Government hopeful economy will grow 7%-8% this year: Target designed for poverty reduction – Paderanga

MANILA, Philippines – The Aquino administration is still hopeful that economic growth would be within the seven percent to eight percent growth projected for 2011.

In an interview, Socioeconomic Planning Secretary Cayetano Paderanga Jr. said that although the World Bank has projected a lower economic growth rate of five percent for the year, the government would still work on achieving the seven percent to eight percent target for 2011.

“Our target of seven to eight percent is a target designed for poverty reduction so we will design our policies to hit that target,” Paderanga said.

Paderanga said the National Economic and Development Authority (NEDA) would be designing policies and projects that would generate employment so that the government would meet its growth target for the year.

Last week, the World Bank said it expects the “Philippines to post another respectable growth this year, although at a slower pace as the economy.” It said the economy is expected to return to normalcy after an “unusual expansion last year.”

In its latest publication, “Global Economic Prospects 2011,” the World Bank has set its growth forecast for the Philippines for this year and next at a range of five to 5.4 percent.

The World Bank expressed confidence that domestic investments would sustain this year the rare increase seen last year but it noted that election spending is no longer present this year.

The Philippine economy grew by 6.5 percent in the third quarter of last year, below market expectations and slower than the second and first quarter growths of 8.2 percent and 7.8 percent, respectively.

From January to September 2010, economic growth averaged 7.5 percent or well above the full-year 2010 target of five percent to six percent set by the interagency Development Budget Coordination Committee (DBCC).

Paderanga stressed that this year’s economic growth targets are achievable as he also noted that the country’s exports industry would continue to diversify its markets to sustain growth. –Iris C. Gonzales (The Philippine Star)