PHL economy to grow 4.8% in 2012—-ADB

THE Asian Development Bank (ADB) on Thursday projected that the Philippine economy would grow nearly at the lower-end target of the government this year.
“At this stage, we believe the 2012 economic growth rate can reach 4.8 percent,” Stephen Groff, ADB vice president said in his speech before the Foreign Correspondents Association of the Philippines (FOCAP).
Groff said that the strong private consumption backed by robust remittance inflows, increasing public investment, and gradual export recovery, would support the Philippines’ economic recovery in 2012.
The government expects a gross domestic product (GDP) of between 5 percent and 6 percent this year.
For 2011, Groff said that after hitting a record high of 7.6 percent in 2010, GDP growth in the Philippines may have dropped to below 4 percent last year.
In the first three quarters of last year , the economy grew by only 3.6 percent.
The ADB official blamed the weak GDP last year to the double-digit decline in exports and the decreased public infrastructure spending.
“It is tempting to think of the Philippines as somewhat insulated from the global environment because about 2/3 of its trade stays within the region. However, its export products are too highly concentrated in electronics, particularly semi-conductors. This lack of diversification makes the Philippines quite vulnerable compared to its neighbors, where exports continued to grow despite the global slowdown,” he said.
Groff also said that the ADB was committed an assistance of US$ 3.8 billion for the Philippines over the next six years.
“In the social sector, for example, we have provided 0 million to support the Pantawid Pamilyang Pilipino conditional cash transfer program to help extremely poor households improve their health, nutrition and education status,” Groff said.
In its pilot phase, Groff said school completion rates rose from 67.5 percent to 73 percent and health indicators improved substantially.
He also said that ADB also supported efforts to improve the country’s physical environment.
“To give one recent and innovative example, after last year’s successful e-trike pilot project, we are looking at options to scale up this investment. Given that tricycles produce double the carbon emissions and triple the particulate matter of jeepneys, this project could have significant benefits into the future,” Groff said. [PNA]