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).