Estrada allays recession fear

Estrada allays recession fear

SUBIC BAY, Philippines (DPA): Philippine President Joseph
Estrada on Saturday allayed fears of a recession, saying that the
economy will be propped by the continuous inflow of foreign
investments.

"I don't think there will be a recession. As you see, there
are so many foreign investors coming in," he said during a
weekend visit to the country's free port.

"Just recently, Nestle bought 10 million shares (of San Miguel
Corporation), and it remitted over US$680 million. There are
other foreign investors (like) First Pacific (of Hong Kong)," he
added.

Estrada's statement follows a government announcement Friday
that the country's gross domestic product (GDP) contracted by 0.1
per cent during the third quarter of 1998.

By World Bank and International Monetary Fund standards, the
Philippines is in a technical recession. An economy is in
recession if its GDP falls for two consecutive quarters.

But Socioeconomic Planning Secretary Felipe Medalla said the
Philippines "escaped" recession due to a 0.8-percent growth in
the gross national product (GNP).