Govt determined to push for 7-8% economic growth — Purisima

The Aquino administration is determined to push for the 7-8 percent gross domestic product growth this year amid economic uncertainties in the global front, a Cabinet official said Friday. Finance Secretary Cesar Purisima pointed out that the economic uncertainties in Japan and in the Middle East will not substantially affect the economic growth of the Philippines. “The government maintains that uncertainties enveloping other parts of the world will not necessarily have a significant and long-term effect to the Philippine growth prospects," Purisima said. He also said the measures undertaken by fiscal and monetary authorities are all precautionary. The measures include the review of macroeconomic assumptions by economic managers and the raising of interest rates by the Bangko Sentral ng Pilipinas. On Thursday, the policy-setting Monetary Board raised the country’s key rates by 25 basis points — the first rate increase since July 2009 — as a precautionary measures against inflationary pressures. Purisima said the Finance Department supports the decision of the central bank. “The Monetary Board’s move has taken into consideration the macroeconomic implications of the ongoing political events in the Middle East and North Africa, the growth implications of the disasters that hit Japan, and the rising costs of food and oil," he said. For now, the country’s economic growth targets would be maintained, Purisima said. “Rest assured that the Aquino administration remains determined to push for the 7-8 percent growth goal [for] this year and in the medium term." Last year, the Philippine economy grew by 7.3 percent, the highest growth recorded in 34 years. — JE, GMA News