On the economy: PHL going for 'a fighting target,' says Paderanga

(Updated 8:16 pm.) Despite the seething unrest in the Middle East and North Africa (MENA) and the uncertainties hounding disaster-stricken Japan, the Philippines will keep its economic target of 7 percent to 8 percent in terms of the gross domestic product. "It's a fighting target," Socioeconomic Planning Secretary Cayetano Paderanga Jr. told reporters Tuesday. Some government officials have said that the inter-agency Development Budget Coordination Committee (DBCC) may lower economic target for the year, and Paderanga made it clear that it would be difficult to meet the “fighting target" given the impact of developments in MENA and Japan on the world’s economies. To meet the target, Paderanga said the government will focus on developing the country’s strong sectors like tourism and business process outsourcing that include the call center industry. With the El Niño-induced dry spell now over, the agriculture sector is on its way to recovery and will definitely help boost the economy, Paderanga said. The committee earlier met to assess how the devastation of Japan the unrest in MENA countries will impact the Philippine economy. Budget and Management Secretary Florencio Abad, who co-chairs the DBCC with Finance Secretary Cesar Purisima, identified the political crisis in the Middle East as the biggest risk the Philippine economy faces because of its effects on remittances and oil prices. On the one hand, money transfers by overseas Filipino workers around the world account for about 10 percent of the Philippine gross domestic product. On the other, the country is a net importer of crude oil. The Philippine economy grew 7.3 percent last year, the fastest in 34 years. The Aquino administration hopes to achieve an annual growth rate of 7 percent to 8 percent during its six-year term, Paderanga said. On that note, the National Economic Development Authority – also headed by Paderanga as secretary general – has approved the Philippine Development Plan from 2011 to 2016, which calls for boosting competitiveness to generate employment. The six-year plan also prescribes improved access to financing, massive investments in infrastructure – particularly transpiration – transparent and responsive governance, and human resources development through better social services. “To achieve inclusive growth, the country needs to achieve a high and sustained growth path, provide equal access to development opportunities across social spectrums and implement responsive social safety nets that would assist those who are left behind by the character of growth," Paderanga said. — VS, GMA News