PGMA confident RP to survive U.S. financial crisis
President Arroyo expressed confidence that the government’s fiscal reforms will allow the country to withstand the effects of the financial crisis.
Although she acknowledged that the country’s Gross Domestic Product (GDP) growth posted only a 4.6 percent increase in the second quarter compared to the 8.3 percent growth recorded in the second quarter last year.
According to the President, the country has remained resilient because of the government’s reform in the tax system. The funds raised by the government through the value-added tax (VAT) helped cushion the country from the global hike in food and oil prices as well as the effects of the meltdown of the US financial system.
It has also given the country the funds to invest in targeted reliefs to the most poor through programs aimed at relieving the high price of energy and food.
Meanwhile, Thomas Crouch, ADB’s deputy director-general for Southeast Asia, said that the Philippine cannot be spared from the financial crisis but he believed the macro-economic policies of the government made it less vulnerable and in a better position to respond to the negative impacts of these events. (PIA/Bohol)
