|
THE Bangko Sentral ng Pilipinas (BSP) said investors have expressed
confidence that the country can sustain strong growth despite
challenges brought by global economic downturn.
“The investors are still positive that
we would be able to weather the challenges ahead of us. They
appreciate that the problems we face are not unique to the
Philippines, but are global in nature,” BSP Gov. Amando Tetangco
Jr. told reporters after his official visit recently to New
York with President Arroyo.
The President had several business meetings with
Manhattan-based corporations to expand their investments in and
trade with the country. She met with Vikas Kapoor of IQor, witnessed
the signing of an agreement between Clark Freeport Zone and
Berthaphil, and another one between the New York Stock Exchange and
the Philippine Stock Exchange. The President also met the officials
of Libby’s Fruits, Rotec, Target Sourcing, APAC and Citi Group.
Target Sourcing, a provider of high-quality,
trend-right merchandise at an outstanding value, reportedly wants to
get Philippine products for its outlets.
The Philippines is inviting Rotec to put up
facilities in the country. The Australian company has a design
center in Silicon Valley and is a world leader in the design and
development of highly efficient diesel engine technology.
“I believe that they appreciated our candor
about our problems and expressed to us their confidence that we have
both the monetary and fiscal discipline to make sure that the macro
fundamentals remain strong,” Tetangco said.
“On the issue of the new government
subsidies, we were able to explain that these are targeted and would
be consistent with a budget deficit for this year of about one
percent, and a balanced budget by 2010,” he added.
The BSP chief’s optimism is in spite the
central bank’s recent downward revision of its forecast for
foreign direct investments this year to $2.6 billion, from its
original estimate of $4.2 billion. The revision was in light of the
postponement of some big-ticket investments in the mining sector.
The country’s economic managers earlier cut
their growth target to a range of 5.7 percent to 6.5 percent this
year, slower than last year’s record 7.2 percent. Slower economic
growth in the US, the Philippines main export destination, has
trimmed the country’s exports earnings since the beginning of the
year. Besides weaker exports, high oil prices also contribute to
expectations of lower gross domestic product growth.
As a result, the country’s balance of payment
surplus is seen to dip to $2.5 billion this year.
The Department of Finance also pushed back the
government’s balanced-budget goal to 2010, and instead set a P75
billion budget-deficit program for this year. The postponement was
brought about by government plans to jack up spending and cushion
the public from the adverse impact of high inflation and a slowing
economy.
The Finance department has set a revenue program
of P1.236 trillion this year, with the Bureau of Internal Revenue
accounting for about 70 percent of the total.
The government reported a budget surplus for
May, a reversal of the deficit last year.
-- Maricel E. Burgonio
|
