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By Angelo S. Samonte Reporter
As world economic leaders meeting
in Davos express concern over a looming US economic slowdown, the
Philippine officials remain confident that the economy could
withstand its negative effects.
“A possible slowdown or
recession in the US economy could dampen the growth of emerging
markets,” Press Secretary Ignacio Bunye said Wednesday. But he
added, “The Philippines will likely withstand the adverse effects
of such a development, largely because of its improving economic
fundamentals.”
The US recession might even be
positive for the country, since “it might also result in increases
in BPO [business process outsourcing] investments in the Philippines
as international companies seek to further reduce their costs.”
“We remain vigilant, and we
know that the BSP [Bangko Sentral ng Pilipinas] is closely watching
developments on the monetary front and that gives us great comfort
that we can and will weather any storm,” Bunye said.
Finance Secretary Margarito Teves
had said the domestic economy, as measured by the gross domestic
product (GDP), is likely to grow between 6.3 percent and 7 percent
this year, even with a US recession. GDP refers to the value of all
final goods and services produced in the country within a year.
Teves said Philippine exporters
have expanded their markets as the share of the country’s
merchandise shipments to the US has been declining over the years to
18 percent in 2006 from 28 percent in 2001.
Teves sees the Philippines’
growing trade with China as cushioning the impact of a US economic
slowdown.
Executive Secretary Eduardo
Ermita, meanwhile, held the Philippines is strong enough to
withstand shocks brought about by a US recession, and President
Gloria Arroyo has refocused government priority by strengthening
ties with other trading partners, including neighbors such as China,
Japan, India, and member countries of the Association of Southeast
Asian Nations (Asean).
“Attracting foreign investment
is also one of the major agenda by the President in her European and
Mideast trips this week,” he said.
The government is also
fast-tracking the completion of major projects in infrastructure
development, education, healthcare and agriculture so that the
people can immediately benefit from these projects, Ermita said.
In Davos
In Davos, Switzerland, world
economic uncertainties associated with the US subprime-mortgage
crisis and soaring energy prices are high on the agenda of the 38th
World Economic Forum (WEF) annual meeting, which opened Wednesday.
The global economy is now faced
with huge slides in stock markets, slowing growth, the subprime
crisis and increasing oil, food and other commodity prices.
The feared US dive into recession
will be discussed side by side with the prospect for peace in the
Middle East; creation of emerging markets in China, India and Latin
America; climate change; terrorism; nuclear proliferation; poverty;
and disease eradication.
Meanwhile, President Arroyo
is exploring possibilities in Davos and was expected to meet with
officials of the Aragon Financial Group on Wednesday.
The financial group assists oil
and natural gas companies that need funding from financial partners
such as private investors, venture capital, equity and institutional
and banking sources.
After her meeting with the Aragon
Group officials, the President will also entertain a courtesy call
of the executives of the Dredging International NV, a Dutch-based
company that has more than 100 years of experience in river
dredging, building ports and reclamation projects in Europe, South
America, Australia, Singapore and Africa.’
--AFP And Xinhua
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