On the 26th, Noli de Castro, Vice President of the Republic of the Philippines, who attended the 4th Expo Central China held here, stated that against the backdrop of the financial crisis threatening the economy of every country in the world, nations across the globe are making active efforts to dissipate the financial storm. While the Philippines has also felt the shockwaves of the crisis, the Philippine economy is currently recovering and rebounding.
Noli de Castro said that the Philippines felt the tremors of the crisis in 2008, but these were not enough to derail the country's economic growth. He noted that in the fourth quarter of 2008, despite the sharp contraction of the U.S. market and the bankruptcy of major investment institutions, the Philippines continued to achieve a commendable GDP growth rate of 4.5 percent. Castro attributed the relatively strong economic performance of the Philippines to the effectiveness of the economic reforms the country has patiently implemented over the years.
Castro stated that the macroeconomic conditions of the Philippines are very stable. The critical and core inflation rate has slowed down, granting the Philippine financial sector greater flexibility in ensuring system liquidity and supporting national development. On the supply side, prices for fertilizers and fuel have been reduced, which helps to stimulate development across the agriculture, fishery, transportation, communication, and storage sectors.
Castro added that the current fiscal condition of the Philippines remains healthy, and financial stimulus plans are already in place. At the same time, the Philippines is also encouraging private sector investment, with transportation, water projects, and energy as the priority areas.
Castro concluded by saying that, to date, the performance of the Philippine economy has been good, and the Philippines remains an ideal destination for commerce, investment, and tourism.
