Chase bullish on RP economy

Chase Manhattan Bank has revised upward its gross domestic product (GDP) growth projection for the Philippines to 3.7 percent this year from the original forecast of three percent.

In a press briefing Thursday night, Chase Manhattan managing director and global head for International Fixed Income Research Joyce Chang said they expect higher economic growth for the Philippines this year and next year due to an improvement in investment, particularly in agriculture.

The US-based bank also upped its growth forecast for the country next year to 4.6 percent from the original forecast of 4.1 percent.

Chang said the expected growth will also be driven by strong exports and rising foreign investment inflows.

"The bottomline is, we are very bullish about the prospects of the Philippines. We are communicating this to various foreign investors who have funds to invest," she said.

Chase Manhattan is leading a global investor group on a fact-finding trip to Asia. Institutional investors from the US, Europe and Asia Pacific are making a one-week trip to meet with key government, diplomatic and corporate representatives from the Philippines, Malaysia and Indonesia.

According to Chang, the results of their meeting with representatives from both the private and government sectors are "good."

"They see the fundamentals of the Philippine economy to improve this year and next year. Looking at the track record of the Philippines compared to other countries in Asia, they (investors) are very bullish," she said.

However, Chase pointed out that the widening budget deficit continues to pose a threat on the government's ability to spur the economy through fiscal spending.

But, Chang said the government has already assured the institutional investors that they will trim down the budget gap this year. -