IMF surprised at Philippines' positive economic performance
IMF surprised at Philippines' positive economic performance
MANILA (AFP): Positive economic figures for the Philippines in
the first half of the year surprised a newly-arrived
International Monetary Fund (IMF) review team, an economic
official said yesterday.
Officials presented to the IMF team figures showing the
country's 5.4 percent gross national product (GNP) growth in the
second quarter of the year, which pushed growth for the first
half to 5.07 percent.
"Everyone was surprised about the performance," said National
Economic Development Authority (NEDA) deputy director general
Dante Canlas.
The IMF team, headed by Khadim Al-Eyd, scrutinized the figures
to see if the growth was "broad-based" and paid particular
attention to growth in the manufacturing sector, Canlas added.
Canlas said the Philippines was able to show that economic
growth could be sustained, noting that there was growth in
virtually all subsectors, much of it fueled by new investments.
He said that the growth showed that the Philippines could
exceed the performance targets set by the IMF under the 684
million-dollar extended fund facility (EFF) approved on June 24.
The IMF mission is to conduct a review of the country's
economic performance to see if it is adhering to the conditions
imposed under the EFF, which sets monetary and fiscal targets for
continued access to IMF credits.
On Wednesday, NEDA chief Cielito Habito expressed confidence
that the 5.07 percent economic growth posted in the first half of
1994, as well as passage of key economic reforms and the Supreme
Court's upholding last month of a controversial expanded value-
added tax, would show the IMF that the country's monetary program
was on stream.
Central Bank governor Gabriel Singson has said the government
would seek an adjustment of the monetary targets set under the
IMF program to allow for increased economic growth.
The IMF mission will review the country's economic performance
over the next two weeks. Under the EFF, such reviews are to be
conducted twice a year until the facility expires in 1997.