Tuesday, August 12, 2008 Economy in ’08 still bleak but recovery viable
AN ECONOMIST said the country’s economy will remain bearish for the remainder of the year.
But Emmanuel Neri, resident economist of the Bank of Philippine Islands (BPI), said the economy will recover in 2009 when world oil prices will remain at $120 or below a barrel.
Neri was in Cebu last Thursday to give an economic briefing for BPI corporate clients.
Neri also said that the foreign exchange at the end of the year will range at P42.50 to P43.50 against the dollar.
He expects that next month, the inflation rate will be “at its peak,” with prices of rice in the world market is slowly decreasing.
“This means that the inflation rate will either be on a plateau or go down slightly,” he said during a news conference following the economic briefing.
“But the inflation rate in the country will remain at double-digit by the end of the year,” he added.
Neri said if rice prices, which is the biggest contributor to the country’s gross domestic product (GDP), continues to go down and compete with the global market prices, the country can expect the inflation rate to drop from 10 percent by the first quarter of 2009. (DME)
