RP revises economic target

RP revises economic target

Reuters, Manila

The Philippines on Tuesday revised down most of its growth targets for 2002, in the wake of uncertainty following the U.S.- led strike on Afghanistan.

The country's Development Budget Coordination Committee (DBCC), which announced the new projections, slashed the 2002 growth target for exports to zero percent from six percent.

It also said the value of imports will likely increase by only three percent next year instead of the previously forecast of a rise of seven percent.

For the first eight months of this year, the National Statistics Office said exports fell 12.98 percent to $21.203 billion from $24.365 billion in the same period in 2000.

The DBCC said the target for gross domestic product growth in 2002 was 4.0-4.5 percent, in line with the revised projection announced last week by Socio-Economic Planning Secretary Dante Canlas.

The Philippines' official economic growth target for 2001 is 3.3-3.8 percent. Last year, GDP grew 4.0 percent.

The DBCC expects the Philippine peso to average between 51.50 to 52.50 to the dollar next year compared with the an earlier projection of 50.0-51.0.

At 0737 GMT (2.37 p.m. Jakarta time), the peso was quoted at 51.765/785 to the dollar versus Monday's closing of 51.690. Philippine President Gloria Macapagal Arroyo has said she hoped the peso would stabilise at 50 to the dollar by end of the year.

The DBCC maintained its forecast of a 5-6 percent average inflation rate and a 10-11 percent interest rate for 2002.