Economy

The economy grew at its slowest pace in seven years in 2008 as the global financial crisis took a toll on services and industry while agriculture wilted from typhoon damage.      

After a record economic growth in 2007, the Philippine economy slowed down last year because of the global financial crisis—but the rate was still better than expected.

The Makati Business Club (MBC) said yesterday that nine out of 10 of its members expect to feel the pinch of the global financial crisis this year.

The economy may have grown at its slowest pace in seven years in 2008, dragged down by high inflation and the impact of the global economic downturn, the National Economic and Development Authority (NEDA) said yesterday.

Local industries are asking the government to encourage consumers to buy locally produced goods in order to help Filipino businessmen cope with the global recession.

The local recruitment industry urged the government yesterday to allow the peso to depreciate to a 55 per dollar rate to encourage the eight million Filipino workers abroad to send more money back home and boost the country’s economy.

Tokyo-based investment bank Nomura International Limited has lowered its gross domestic project (GDP) growth projection for the Philippines this year to 2.8 percent from three percent previously, due to the global financial turmoil.

PRESIDENT Arroyo has approved a 10-percent increase in her administration’s economic stimulus package to create 3 million jobs and to finance an infrastructure buildup this year, bringing the fund total to P330 billion.

The World Bank said impact of the global slowdown on the country would be felt most in terms of its exports and remittance inflows, prompting the lender to further cut its growth forecast.

Economic growth of 4.7 percent in the Philippines is possible this year as long as the government spends money to get it through the global turmoil, a senior economics minister said Friday.

Two senior British diplomats yesterday said that the Philippines needs to change the perception that it has “stagnated” and doing business here is difficult compared to other Southeast Asian countries.

BEIJING (AFP) — China revised upwards its 2007 growth figures Wednesday, indicating the Asian giant overtook Germany as the world’s third largest economy, analysts said. China’s economy expanded by 13.0 percent in 2007, up from a previous calculation of 11.9 percent, the National Bureau of Statistics said. “At market exchange rates, China in 2007 was…

Local businessmen expect a further drop in exports while profitability and sales of firms will be lower this year as the full effects of the global financial crisis hit the business sector this year.

Business profitability, exports, turnover seen to drop this year Local business leaders said profitability, exports and turnovers will drop this year as the country feels the full effects of the global financial crisis, a report said yesterday.

Until 2003, Filipino families were spending less on food and more on house rental and transportation and communication, according to a survey conducted by the National Statistical Coordination Board.

Economic growth in the Philippines remains unbalanced with Metropolitan Manila accounting for a third of the country’s economy, economists said Monday.

Job and small business creation are now one of the priotrities of the government to help Filipinos especially returning overseas Filipinos workers (OFWs) that have lost their jobs as a result of the global financial crisis, the Department of Trade and Industry (DTI) said.

THE Asian Development Bank has given a satisfactory rating to its operation in the Philippines last year, an improvement from previous years when many targets were not achieved.

Finance Secretary Margarito Teves said the 2008 budget deficit is likely to fall below the P75-billion program, because of higher-than-expected royalty payments from the Malampaya natural gas project.

The Philippines is vulnerable to the global financial crisis, but less so than other countries in the region as its banks and external financial position are sound, Fitch Ratings said yesterday.

Upon reading all the columns these days, there is nothing but bad news about 2009. Not that I disagree with many of the views, but I think things will be different. The Philippines will be far better than many other countries. Here are 10 reasons why I think we should be happy in 2009.

The country is vulnerable to a financial shock if cash remittances by masses of Filipinos working abroad dry up due to the global crisis, investment analyst group Moody’s warned yesterday.

This year will be critical for the Philippines as it faces a bleaker global financial market as well as recession and volatility in prices, particularly oil.

London-based Fitch Ratings has maintained its stable outlook for the Philippines, saying the country is “reasonably healthy” despite the tumult in the global economy.

The bicameral conference committee has agreed to increase to P50 billion the P10-billion Economic Stimulus Fund proposed by the Senate in the 2009 budget, Sen. Edgardo Angara said Monday.

The government expects the country’s consolidated public sector position to incur a deficit of P74.3 billion for 2009, a marked turnaround from its previous projection of a P25.4-billion surplus for this year.

HONG KONG: The world could look forward to peace and harmony in 2009, but Chinese soothsayers warned that the road to economic recovery would be long.

Religious leaders called on Filipinos yesterday to work hard, exercise frugality and be compassionate and willing to help those in need in 2009.

The see-saw economy, disasters both man-made and natural, sporting zeroes and heroes, and the usual political rigmarole dominated the headlines in the year just past.

Nine out of 10 or 92 percent of Filipinos look forward to the New Year with hope rather than fear, a survey by the Social Weather Stations (SWS) showed.