Neda expects achieving targets despite shocks

MANILA -- The National Economic and Development Authority (Neda) said it is expecting to achieve the targets stated in the Philippine Development Plan (PDP) 2011-2016 despite unexpected external shocks.

According to Neda's Socioeconomic Report (SER) dated 2010-2012, the external events, which threatened economic growth during the first two years of the Aquino administration, are the disaster in Japan in the first quarter of 2011, the Thailand flooding in the third quarter, the social unrest in the Middle East and the African region weakened the economy in 2011, affecting trade, foreign direct investments, and other financial channels.

The Euro debt crisis and the sluggish recovery of the United States economy from the financial crisis shook investor confidence and resulted in tighter credit and a decline in investments, the agency added.

The delay in spending for public construction further dampened growth, it added.

However, Neda cited that for the first three quarters of 2012, the country posted a 6.5 percent growth, surpassing the five to six percent full year growth assumption of the Development Budget Coordination Committee.

It also noted the 3.2 percent inflation last year, within the government's target range of three to five percent, and the sustained inflow of remittances from migrant Filipino workers, net portfolio investments, and foreign direct investment, which contributed to the peso appreciation.

“To catch up with the targets in the PDP, the government will continue to partner with the private sector in developing the industry and services sector,” Neda said.

The SER 2010-2012 is an assessment of the first two years of the Aquino administration in relation to the targets and strategies set in the PDP 2011-2016. (SDR/Sunnex)