Malacanang says Philippine economy remains strong despite debt crisis in Europe

November 30, 2011 10:55 pm 

MANILA, Nov. 30 — The country’s economic managers were able to steer the Philippine economy very well this year, and it might continue next year, Malacanang said on Wednesday allaying fears of a possible spill over of the European debt crisis.

In a press briefing on Wednesday, Presidential Spokesman Edwin Lacierda said that the country’s fiscal situation remains strong because of the prudent handling of the economy.

Early this week, the Paris-based Organization for Economic Cooperation and Development (OECD) urged policy-makers around the world to be prepared to “face the worst,” as the economic impact of Europe’s debt crisis threatens to spread around the developed world.

“We have been very, very prudent. We have avoided the pitfalls that other nations, those experienced by other economies. Our infrastructure spending is going to go up. We believe that the infrastructure spending for 2011 will spill over to next year. And also we have the 2012 infrastructure projects that will be moving by next year,” Lacierda said explaining the Philippines economic condition.

Asked if the Philippines will join calls for the European Union (EU) leaders to take decisive action to stem the crisis, he said: “Our banks, banking institutions, have been very, very prudent. Our fiscal managers have not piled on debts for our country. So I think we are in a good situation.”

While the country could be affected by the recession in other countries or the downturn in the global economy, Lacierda however said that domestically, they believe the Philippines is in “a good situation.”

OECD said the continued failure by EU leaders to stem the debt crisis that began in Greece could escalate and result to “highly devastating outcomes.”

The Philippines is seen to grow economically not far from its Southeast Asian neighbors, with a regional average growth rate of 5.6-percent between 2012 and 2016. The OECD projects the Philippine economy to grow only by 4.5 percent this year.

OECD said regional growth drivers will be Indonesia and Vietnam in the medium term. They are expected to grow on average by 6.6 percent and 6.3 percent, respectively, between 2012 and 2016, it said. (PNA)



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