ADB President expects Philippine economy to continue expanding

March 2, 2012 10:24 am 

MANILA, March 1 — The Philippine economy is expected to continue to grow and could even hit 6-7 percent economic expansion in the long run, Asian Development Bank (ADB) president Haruhiko Kuroda said on Thursday.

The ADB official said that for this year, he sees the Philippine gross domestic product to expand by 5 percent from 3.7 percent in 2011.

"This year, we expect around 5 percent growth in the Philippines and both in medium to long run, the Philippine economy can grow 6 to 7 percent," Kuroda said in a press conference.

He said the local economy will continue to grow "not just depending on one item but on multiple items -exports, consumption, investments and so on and so forth -and that would probably continue."

"I think the Philippine economy is, in some sense, a quite balanced economy," he said.

Kuroda said in order for the Philippine to accelerate its economic growth, there should be more and better infrastructure and better governance.

Kuroda also expects developing Asian economies to grow by 7 percent this year. While he believes this is a "respectable rate of economic growth," Kuroda said the ADB is "cautiously optimistic " about the region's growth prospects. Rising oil prices and European financial crisis threaten emerging Asian economies.

"Despite some slowdown on the global economy, particularly in Europe, oil prices stay at relatively high level. And if oil prices go up sharply, deflecting some geopolitical events, then Asia could be seriously affected," he said. (PNA/Xinhua) RSV/mmg

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