RP '01 GDP seen at 2.6%

RP '01 GDP seen at 2.6%

MANILA (Dow Jones): The Philippine economy is expected to grow 2.6% year-to-year in 2001, a rate well below the government's target of at least 3.3%, according to a regional economic think tank funded by the Australian government.

The forecast was made by the Asia Recovery Information Center, or ARIC, in an update to its March survey of East Asia's economies. At that time, it forecast the Philippines' gross domestic product expanding 2.7% in 2001.

ARIC said the downside risks to growth in many of the region's economies have increased over the past three months.

"In the Philippines, despite a favorable outcome in the May elections for President Arroyo's party and approval for the crucial power sector reform bill, the recent hostage crisis has again jolted investor confidence," the report said.