RP economy may slow down

RP economy may slow down

MANILA (AFP): Philippine economic growth is expected to slow down in 2001, the economic planning secretary said on Thursday, although the quick resolution of President Joseph Estrada's corruption trial may help pull up growth figures.

Economic Planning Secretary Felipe Medalla said that gross domestic product (GDP) in 2001 would range from 3.0 to 3.5 percent compared to an estimated four percent this year.

Gross national product (GNP) growth, which includes income from abroad, including the remittances of millions of Filipinos working overseas, was forecast at 3.2 to 3.7 percent next year from a projected 4.2 percent this year.

The projections for 2001 are downgraded from the previous targets of 4.0-5.0 percent GDP growth and 4.5-5.5 percent GNP growth.

Among the reasons for the lower growth expected next year are the return of the El Nino weather phenomenon in the second quarter of 2001, a slowdown in world economic growth, particularly in the United States, tighter fiscal controls and a weaker-than-expected local currency, Medalla said.