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Arroyo says Philippines can weather US slowdown
Philippines President Gloria Arroyo has said sustaining the fiscal reforms which made the Philippine economy resilient will help the country weather the economic slowdown in the US.
- By Barbara Mae Dacanay, Bureau Chief
- Published: 00:04 January 25, 2008
Manila: Philippines President Gloria Arroyo has said sustaining the fiscal reforms which made the Philippine economy resilient will help the country weather the economic slowdown in the US.
"The Philippine economy grew faster than the rest of Southeast Asia, despite oil price volatility and a global economic slowdown," Arroyo said in a speech before the Swiss-Asian Chamber of Commerce in Zurich, Switzerland, the transcript of which reached Manila's presidential palace.
The Philippines grew at 7.1 per cent for the first three quarters of 2007, its fastest growth in 28 consecutive quarters.
"We have instituted various reforms including new monetary policies and fiscal discipline, which will make our economy strong," Arroyo said.
"We are vigilant that our efforts should not be derailed by the subprime crisis and the subsequent credit crunch in the US."
Arroyo said her economic team will work harder in sustaining the country's strong economic fundamentals.
The US is the Philippines largest market. It also hosts millions of Filipino workers. Earlier, the Philippines economy was buoyed mainly by strong remittances from an estimated 8 million overseas Filipino workers (OFWs).
The workers sent back $14.7 billion (Dh54 billion) in remittances to the Philippines in 2007, up from the $13 billion in 2006. Both figures represent 13 to 14 per cent of the country's GDP.
However, business leaders in the Philippines remained jittery, saying that a looming recession in the US could dampen growth in Southeast Asia.
On Tuesday, the Manila Stock Exchange fell 5.5 per cent, a big one-day loss, following a global market plunge.
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