NEDA set to review growth targets amid bailout rejection

MANILA, Philippines – The Philippines’ socioeconomic planning body will review its economic forecasts following the US Congress’ rejection of a $700-billion bailout plan that will allow the American government to buy bad mortgages and other deficient assets of troubled financial institutions. A report by Manny Vargas of radio dzBB quoted National Economic and Development Authority (NEDA) director-general Ralph Recto as saying his agency will review its economic growth targets for 2008 and 2009 because the Philippine economy will undoubtedly be affected by the US financial crisis. The growth target for 2008 has already been recently cut down to 5.5 - 6.4 percent from the original 6.3 - 7 percent, while the target for 2009 is currently pegged at a 6.1 - 6.9 percent. Early last month, Recto said his personal recommendation is to reduce economic targets for this year is 5 - 5.5 percent. The radio report quoted Recto as saying that while the US Congress’ possible passage of a revised bailout plan on Friday (Manila time) will assuage the financial market, it will not completely salvage the falling US economy. On September 22, NEDA deputy director-general Augusto Santos told GMANews.TV that they will review the Philippines’ economic targets even if the US Congress passes the bailout plan because the US financial crisis "is an ongoing thing." Earlier in the day, Budget Secretary Rolando Andaya Jr said the Philippines’ long-standing economic policies, such as relatively timely debt servicing and a high saving rate, will help cushion the blow of the global financial crisis brought about by the US economic meltdown. - GMANews.TV