MANILA BULLETIN - January 25, 2008

RP seen to keep growth momentum

Philippine economic growth, which is expected to slow down this year, is expected to recover to 7 percent in 2009, the Institute of International Finance (IIF) said in a report.

The IIF said the Philippines' macroeconomic stability will be further improved by the continued fiscal and monetary management which is "helping the economy weather more unfavorable global conditions."

"Moderate growth in consumption and a slackening in external demand are likely to slow real GDP growth to 6.5 percent in 2008 from 7 percent in 2007, before a rebound in the global economy and more accommodating policies help lift it to close to 7 percent in 2009," the IIF in its January 22 Philippine Outlook Update said.

In the meantime the IIF report said weak export growth also suggests that the country's current account surplus will be lower this year or from billion in 2007 to billion, before "recovering" to billion in 2009 as exports growth picks up.