Philippine GDP growth seen at 5%

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Manila’s cityscape. Philippines growth is predicted at 5 per cent for 2012, but FDI levels have been falling lately.

The Philippine GDP will grow by 5 per cent in 2012, International Monetary Fund (IMF) Managing Director Christine Lagarde said during her visit in Manila on November 16. She added that the Philippines was the only country in the world where the IMF has upgraded its growth forecast for this year.

Other multilateral financial institutions such as the World Bank and the Manila-based Asian Development Bank (ADB) have also adjusted upwards their forecast for the Philippines.

According to Lagarde, emerging Asian economies like the Philippines play a significant role in driving growth of the global economy at this difficult time when industrialised countries are confronted with economic crisis.

Lagarde is the second leader who made an optimistic projection about the Philippines’ economic future. Earlier in November, visiting Canadian Prime Minister Stephen Harper made the bullish prediction to President Benigno Aquino that the Philippines could be the next “Asian tiger”.

“And we are certainly looking forward to 2013 growth being in the range of 5 per cent as well,” Lagarde said.

“This is due in no little part to … a combination of sound fiscal policy as well as sound monetary policy,” she added.

The Philippine government is even targeting ranges of 5-6 per cent for 2012 and 6-7 per cent for 2013, respectively.

FDI shrinking

But some recent economic indicators could dampen the rosy picture of the Philippines.

Data released by the country’s central bank shows that the net inflow of foreign direct investment (FDI) in the country fell to only $13 million in August, down by nearly 83 per cent from $76 million in the same month last year. The amount was also 88 per cent lower than the $108 million in July.

The central bank said that the drop in the net FDI inflow “reflects investors relatively cautious stance due to weak global economic prospects and financial strains in the advanced economies.”

P&G investing

On the plus side, Procter & Gamble Philippines has said on November 16 that it will invest another $53 million in its new manufacturing and distribution plant in Cabuyao, Laguna. The additional investment aimed to further enhance the quality of the company’s products and services, the company said, adding that its total Philippines investments this year would reach $126 million.

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Reading Time: 2 minutes

Manila’s cityscape. Philippines growth is predicted at 5 per cent for 2012, but FDI levels have been falling lately.

The Philippine GDP will grow by 5 per cent in 2012, International Monetary Fund (IMF) Managing Director Christine Lagarde said during her visit in Manila on November 16. She added that the Philippines was the only country in the world where the IMF has upgraded its growth forecast for this year.

Reading Time: 2 minutes

Manila’s cityscape. Philippines growth is predicted at 5 per cent for 2012, but FDI levels have been falling lately.

The Philippine GDP will grow by 5 per cent in 2012, International Monetary Fund (IMF) Managing Director Christine Lagarde said during her visit in Manila on November 16. She added that the Philippines was the only country in the world where the IMF has upgraded its growth forecast for this year.

Other multilateral financial institutions such as the World Bank and the Manila-based Asian Development Bank (ADB) have also adjusted upwards their forecast for the Philippines.

According to Lagarde, emerging Asian economies like the Philippines play a significant role in driving growth of the global economy at this difficult time when industrialised countries are confronted with economic crisis.

Lagarde is the second leader who made an optimistic projection about the Philippines’ economic future. Earlier in November, visiting Canadian Prime Minister Stephen Harper made the bullish prediction to President Benigno Aquino that the Philippines could be the next “Asian tiger”.

“And we are certainly looking forward to 2013 growth being in the range of 5 per cent as well,” Lagarde said.

“This is due in no little part to … a combination of sound fiscal policy as well as sound monetary policy,” she added.

The Philippine government is even targeting ranges of 5-6 per cent for 2012 and 6-7 per cent for 2013, respectively.

FDI shrinking

But some recent economic indicators could dampen the rosy picture of the Philippines.

Data released by the country’s central bank shows that the net inflow of foreign direct investment (FDI) in the country fell to only $13 million in August, down by nearly 83 per cent from $76 million in the same month last year. The amount was also 88 per cent lower than the $108 million in July.

The central bank said that the drop in the net FDI inflow “reflects investors relatively cautious stance due to weak global economic prospects and financial strains in the advanced economies.”

P&G investing

On the plus side, Procter & Gamble Philippines has said on November 16 that it will invest another $53 million in its new manufacturing and distribution plant in Cabuyao, Laguna. The additional investment aimed to further enhance the quality of the company’s products and services, the company said, adding that its total Philippines investments this year would reach $126 million.

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