Philippine economy faces growth threats in 2012

The Philippine economy is facing major risks from abroad that could limit its growth prospects next year, the central bank governor said Wednesday.

Although the country enjoys "sound macro economic fundamentals," and strong domestic demand, the economy could still be hurt by developments in Europe, the United States and China, central bank governor Amando Tetangco said.

"The 2012 global economic outlook has deteriorated," he said, warning that there would be more volatility and uncertainty that could affect the Philippines.

"Although economic growth has slowed, we have not seen a contraction" in 2011, he told a forum of foreign correspondents.

The economy grew by 3.6 percent in the first nine months of the year, though the government maintained its full-year target of 4.5-5.5 percent, pinning its hope on a $1.66 billion state spending programme launched in October.

Next year's official growth target is 5-6 percent.

Tetangco said fears of an escalating debt crisis in Europe, the continuing weak US labour market and the risk of a slowdown in China could weigh on Philippine growth prospects in 2012.

They could result in a drop in trade, investment and official aid, he said, warning that even earnings from the country's booming outsourcing industry and the remittances of nine million Filipino workers overseas could be affected.

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Ayungin dilemma Ramon Casiple - Parallaxis
    Ayungin dilemma

    China faces a dilemma in Ayungin Shoal and other contested areas. If it waits for the ITLOS—which may decide against it—it would have tacitly bound itself to UNCLOS and risk a rogue state reputation if it asserts its claim in the South China Sea. If its militarily acts now, it may face international isolation. …

  • 48 nabbed in biggest anti-trafficking catch in Bongao VERA Files - The Inbox
    48 nabbed in biggest anti-trafficking catch in Bongao

    By Jake Soriano, VERA Files Bongao, Tawi-tawi—A team of Marines and policemen intercepted around noon Thursday 48 people, 12 of them minors, believed recruited by a human trafficking syndicate for work in Malaysia. The arrest constitutes what advocates called the … Continue reading → …

  • Docs vow to pay right taxes, make peace with BIR VERA Files - The Inbox
    Docs vow to pay right taxes, make peace with BIR

    By Kiersnerr Gerwin Tacadena, VERA Files Leaders of the medical profession have made peace with their former adversary, the Bureau of Internal Revenue (BIR), and joined forces in a campaign to get doctors to pay the right taxes. BIR Commissioner … Continue reading → …

POLL
Loading...
Poll Choice Options