MANILA, Philippines—The Euro zone crisis may have hampered the country’s economic growth in 2011 but the National Economic Development Authority (NEDA) remains optimistic about its growth targets for this year.
NEDA Director-General Cayetano Paderanga, Jr. said that the country’s gross domestic product (GDP) is projected to expand between 5.0 to 6.0 percent in 2012. Growth target for 2011 was pegged at 4.5 to 5.5 percent.
This growth will be led by accelerated fiscal spending that the government will pursue this year, after it has put in place processes consistent with principles of good governance and transparency in project implementation.
Paderanga said the government has already laid out the system for the funding of various infrastructure projects especially those under the Public-Private Partnership program.
The government will also stimulate domestic demand by boosting domestic consumption, securing investments, and safeguarding price stability. The government is keen on aggressive job creation and financing small and medium enterprise to further boost consumer spending.
Further, the government will also strengthen its economic relations with ASEAN economies and China. Paderanga said that the government recognizes the importance of strengthening our relationship with our neighboring Asean countries especially with China — now an economic superpower — and the possible investment opportunities that we can establish with these countries.
The country’s domestic and external trade will also be diversified to foster close integration with the fast-growing Asean economies.