Cabinet to meet on GDP 'blip'

By Mia Gonzalez
Reporter

PRESIDENT Arroyo has called for a Cabinet meeting next week to address the unexpected third-quarter economic slowdown which Palace officials deemed as a "momentary blip" that would be offset by increased consumer spending and remittances of overseas Filipino workers, among others, in the last quarter.
           
Cabinet Secretary Ricardo Saludo revealed this in a news briefing: "We have news of an economic slowdown in the third quarter that we'd like to think is really just a blip in our continuing acceleration of the economy. This is only temporary, brought about by the damage wreaked by typhoon Milenyo in the third quarter," Saludo said.
           
The economy grew at only 4.8 percent in the third quarter, much lower than the government forecast of 5.2 percent and 5.8 percent for the period, and now requires at  least an economic growth of 5.7 percent in the fourth quarter for the government to meet its minimum average growth target of 5.5 percent this year.
           
Dispelling fears about an unmet target, Saludo said:  "We are expecting the continued growth of the economy due to several factors like consumer spending, which we expect to increase toward the last part of the year especially during the Christmas holidays, and our infrastructure projects."
           
He said infrastructure development "will be a driving force in the economy", together with consumer spending, OFW remittances, "burgeoning" Philippine exports and tourism, and the fast-growing information technology sector. 

Business Mirrror
December 1, 2006