By Lilybeth G. Ison
MANILA, (PNA) — President Benigno Aquino III on Wednesday said the seven percent growth forecast of the Asian Development Bank (ADB) for the Philippines is “achievable.”
“I think it’s achievable,” the President said in a chance interview with reporters at the sidelines of the Brotherhood of Christian Businessmen and Professionals’ Grand Breakfast held at the SM Mall of Asia in Pasay City.
The President said there are positive factors that would increase growth in the country’s economy such as the seemingly rebounding of the Japanese economy, amongst others.
He, however, said that there are also factors “beyond control” that may dampen the economy, citing the current partial government shutdown by the US.
“I would not want to say right now na guaranteed lahat ‘yan. There are factors beyond our control. Things that happen in the Middle East, for instance; the current government shutdown in America,” he noted.
“I will not state categorically a particular number but, we will continue to strive to make the GDP (gross domestic product) figure that much higher,” he added.
In the ADB Outlook 2013 update, it raised its 2013 growth forecast for the Philippines to seven percent, from its earlier forecast of six percent in April.
The ADB also upgraded its 2014 forecast for the Philippines to 6.1 percent from 5.9 percent.
The ADB report noted that the Philippines has been growing faster than expected.
“As the Philippines has grown more quickly than forecast, its growth projection for 2013 as a whole is upgraded from 6.0 percent to 7.0 percent,” it said.
In contrast, the ADB lowered its growth forecast for developing Asia to 6.0 percent this year, from its earlier forecast of 6.6 percent, due to softer-than-expected economic activity in China and India as well as global financial jitters of the US quantitative easing (QE) program.
In particular, the ADB cut its 2013 growth projections for China to 7.6 percent from 8.2 percent in April, and India to 4.7 percent from 6.0 percent.
“Asia and the Pacific 2013 growth will come in below earlier projections due to more moderate activity in the region’s two largest economies (China and India) and effects of QE nervousness,” it said.
While economic activity will edge back up in 2014, the ADB said, “current conditions highlight the need for the region to exercise vigilance to safeguard financial stability in the short term while accelerating structural reforms to sustain economic growth in the longer term.”
The ADB said it downgraded 2013 forecasts for most of Asia, which “still suffers subdued demand from the advanced countries and weaker demand from the PRC (People’s Republic of China).”