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.