Effects of global crisis prompt Manila to cut its growth goals

MANILA, Philippines – The Philippines’ economic managers reduced growth targets for this year, recognizing severe effects of the global slowdown that has cut export demand and may slash remittances from overseas Filipino workers.

The Philippine economy may only grow within a range of 3.7 to 4.4 percent, Socioeconomic Planning Secretary Ralph G. Recto said during a presentation he delivered at an economic briefing.

The government previously set this year’s growth goals at 3.7 percent to 4.7 percent.

Last year, the Philippine economy expanded by 4.6 percent, a far cry from 2007’s 7.1 percent, it’s highest in three decades.

The country’s gross national product (GNP), which includes income from overseas, is expected to expand by anywhere from 4.2 percent to 4.9 percent. Last year, GNP expanded by 6.1 percent.

Agriculture, which makes up about a fifth of the economy and grew 3.2 percent last year, is expected to improve by three percent to 3.6 percent.

With falling exports, the industry sector is seen to post slower growth to 3.9 percent to 4.7 percent from last year’s five percent.

Services are also seen to take a hit as its growth forecast is between 3.8 percent and 4.5 percent from last year’s 4.9 percent.