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By Chino S. Leyco, Reporter
THE local economic fallout from a slowdown in
the US is unlikely to be big, the Philippine government said
Tuesday.
Finance Secretary Margarito B. Teves said while
a possible recession in the US could dampen growth, Philippines will
likely withstand the adverse effects of such an event.
“Because of its improving economic
fundamentals, this year, prospects are bright that the country will
again achieve a GDP [gross domestic product] growth within a range
of 6.3 percent to 7 percent,” Teves said.
Acting Socioeconomic Planning Secretary Augusto
B. Santos, however, said the recession may affect the country’s
exports since the US is a leading trade partner.
“There is hope that it will not happen because
the US government is taking aggressive steps to stave off recession,
and if recession is prevented from occurring in US, that’s good
news for us,” Santos told reporters.
Teves said the US’ share to total Philippine
exports has been declining over the years from 28 percent seven
years ago to 18 percent in 2006.
The local business processing outsourcing (BPO)
sector, which caters mainly to the US market, is more affected by
structural factors like cost-cutting rather than cyclical factors,
he said.
“Remittances from overseas Filipinos, which
have been a strong driver of the country’s economic growth will
likely continue to be robust given the increasing demand for medical
workers and teachers globally,” he added.
The expansion of economies in the Middle East,
Teves said, should also provide a steady and strong source of demand
for Filipino workers.
“The country’s performance has been
recognized by the international financial community and has resulted
in a surge in net portfolio, foreign direct investments and upbeat
economic forecasts,” he added.
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