PHL economy likely grew 7% in 2010, says BSP

(Updated 10:01 p.m.) The Philippine economy likely grew 7 percent in terms of gross domestic product last year, Bangko Sentral ng Pilipinas (BSP) Gov. Amando Tetangco Jr. said Tuesday. The strong economic results in the first three quarters of 2010 likely sustained the fourth quarter performance, he said. "We believe that 7 percent growth for 2010 is attainable given the first to third quarter 2010 actual growth rate and given the likely outcome of the fourth-quarter performance," Tetangco said. The Philippine GDP, a measure of domestic output of goods and services, grew 7.5 percent in the first three quarters of 2010 from 0.7 percent in the same 2009 period. Monetary authorities believe the country can also reach its GDP target this year despite the fragile economic recovery by in the US and Europe. "We also believe that the 7 percent to 8 percent GDP growth target for 2011 is attainable, should consumption remain solid and investment gain further traction with the infrastructure programs of the government," the central bank chief said. The country's external trade would continue to improve in line with the economic recovery of its major trading partners, according to the central bank chief. However, emerging market economies including the Philippines would continue to fuel global economic growth as advanced economies led by the US and Europe continue to struggle, he added. Key risk to growth "Having said this, a key risk to Philippine economic growth continue to be the uncertainty in the shape and speed of the global economic recovery, including whether it will continue to be multi-speed, and therefore a fragile one," Tetangco explained. Socioeconomic Planning Secretary Cayetano Paderanga Jr. earlier said the Aquino administration is confident this year's economic target could be achieved despite lower expectations by multilateral lenders led by World Bank. “Our target of seven to eight percent is a target designed for poverty reduction, so we will design our policies to hit that target," said Paderanga, who is also the NEDA chairman. The National Economic and Development Authority (NEDA) would design policies and projects to generate employment so that government would meet its economic forecast for the year, the NEDA chair said. The World Bank said last week it expects the “Philippines to post another respectable growth this year, although at a slower pace…" as the economy is expected to normalize after last year’s “unusual expansion…" In its “Global Economic Prospects 2011," World Bank said the Philippine economy will grow 5 percent this year and 5.4 percent next year. — VS, GMANews.TV