ECONOMIC GROWTH outlook for the Philippines this year and the next has
been revised downwards over weak government spending and slow exports
even as higher public and private investments are seen to drive
prospects next year, according to a forecast of the Asian Development
Bank on developing Asia released on Wednesday.
The Asian Development Outlook, the second since April, forecast growth
at 4.7% from 5.0% for 2011 and 5.1% from 5.3% in 2012. The figures are
lower than the government's budget assumption of 5.5% this year and 6%
next year.
Domestic demand is expected to drive growth for the Philippines this
year, the ADB said, but exports will be "a drag" as uncertainties hound
major industrial economies.
Low state spending and lackluster export performance were cited as
reasons for the dismal 4.0% average output of the economy in the first
half, according to government data, prompting the government's economic
managers to take a second look at the 7-8% fighting growth target for
the year
In a statement, Neeraj Jain, country director for ADB's Philippine
Country Office, said infrastructure projects under the government's
flagship Public-Private Partnership "must get under way" to achieve the
forecast growth for 2012.
Otherwise, the statement said, "lack of progress on the government's
reform efforts, including Public-Private Partnerships, would also erode
investor confidence," as it cited the "downside risks" of lingering
economic woes in the US, Europe and Japan that may have an impact on
exports, remittances and investment.
The ADB, meanwhile, slightly adjusted downward its forecast for
Southeast Asia to 5.4% from 5.5% this year and 5.6% from 5.7% next year.
Outlook for the rest of developing Asia was also revised to 7.5% from
7.8% and 7.5% from 7.7% in 2011 and 2012, respectively. ��" AEM
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