Phl won’t revise economic growth target in 2012 after slowdown in Q2

MANILA, Philippines (Xinhua) – The Philippine government will not revise its growth target of 5-6 percent for 2012 despite the slower on-year economic growth in the second quarter, a senior government official said today.

Presidential Communications Development and Strategic Planning Office Secretary Ricky Carandang, however, said the present administration is happy with the 5.9 percent gross domestic product growth for the second quarter because it exceeded the market expectations.

The Philippines’ second quarter growth rate was slightly lower than the revised 6.3 percent growth from January to March this year.

“Remember, some of you were asking me after the first quarter figures came out whether or not we would look at upward revision in the GDP. And I remember saying that there’s a lot of uncertainty in the global economic environment and that we will retain our 5 to 6 percent GDP growth targets. I think, if you see what happened in the second quarter, there’s no reason for us to revise our targets at this point,” Carandang said.

Given what has been happening in Europe, particularly in Greece and Spain, and in the United States, he expressed belief that the government’s GDP growth targets for this year have remained realistic.

“I think our targets have proven to be realistic and perhaps maybe even conservative,” he said.

For his part, Central Bank Governor Amando M. Tetangco Jr. said the second quarter growth performance will “boost market confidence the economy will be able to grow at closer to the higher end of the government target of 5 to 6 percent.”

“This should also support the financial markets, including the spot foreign exchange market,” he said, alluding to further strengthening of the peso.