Phl no longer dependent on OFW inflows – P-Noy

MANILA, Philippines – The Philippine economy is now focused on “investment-led growth” and is no longer heavily dependent on the remittances of overseas Filipino workers,” President Aquino said yesterday.  

“The fact that we are a little bit more insulated now points to the fact that we have more investment-led growth rather than purely consumption resulting from OFW remittances,” Aquino said in an interview on the sidelines of the awarding ceremonies of the 2011 Bagong Bayani at Malacañang.

Gross domestic product grew 3.2 percent during the third quarter, below the projection of state economic managers of a growth of between 3.8 percent and 4.8 percent.

Aquino said this is because of the ripple effect of the global recession, natural disasters and political turmoil in various parts of the world. He said this is precisely the reason for the release of the P72 billion stimulus package last October.

He noted that the Philippine semi-conductor and automotive industries were affected by the production shortfall in Japan when it experienced a nuclear crisis early this year.

Aquino said that compared to other economies, the Philippine economy remained resilient and because of this, has received several credit upgrades.

In the first half of the year, international credit rating agencies Moody’s Investors Service, Standard and Poor’s, and Fitch Ratings raised their credit rating on the Philippines because of favorable developments.

Aquino is optimistic that growth targets for this year and 2012 will be met. Budget Secretary Butch Abad earlier said that P20 billion more may be added to the stimulus package but Aquino did not confirm this.

“Well, we are hoping and we are marching towards that goal (achieve projected growth targets),” Aquino said.

The President said there are also “substantial developments” in the government’s efforts to address classroom shortage.

“We’re very close to meeting the target for the classrooms for this year and hopefully that will lay the basis for the really expanded school building program for next year amongst other things,” he said.

He said the same is true for the programs of the Department of Public Works and Highways. Palace officials earlier said the effects of faster disbursement of funds in the third quarter would be felt this quarter.

The government was criticized for underspending for the first three quarters of the year but Palace officials said this was done to make sure that funds are used wisely.

“From the DPWH, they have learned from the first two quarters safeguards that have to be built in order to prevent leakages. So we did not spend unwisely, I think we spent wisely and we’ll have more acceleration in the second semester,” Aquino said. –Delon Porcalla (The Philippine Star)