RP growth targets within range - World Bank

The country's economic growth targets for this year are within range as long as agriculture and manufacturing do not misfire, World Bank resident representative Vinay Bhargava said yesterday.

The country has targeted gross domestic product growth (GDP) of four to five percent this year and 4.5-5.5 percent in terms of gross national product (GNP) expansion.

GDP, the sum of the country's goods and services output, rose 3.2 percent last year, with GNP, which adds foreign income, growing 3.6 percent.

"The targets are achievable," Bhargava told reporters, adding that the "first quarter results will be indicative enough of the growth rate for this year."

The government is set to release first quarter data in May.

Bhargava said "agriculture will be the key and the growth in manufacturing."

Manufacturing was a mere 0.5 percent last year, while agriculture grew 6.6 percent.

Meanwhile, the government and the World Bank signed a $150-million loan agreement which would finance the first phase of a nine-year government reform program in the road sector.

The loan agreement was signed yesterday by Finance Secretary Jose T. Pardo on behalf of the government and Bhargava.

The new loan of $150 million will address the problem of poor quality of national roads which has affected the country's economic development.

"Depending on how well this project will progress, we are committed to lend as much as $850 million," Bhargava said.

He also said the World Bank has not yet released the second tranche of the $300-million Bank Sector Reform Loan.

The second tranche amounts to $100 million with another $100 million co-financing from the Japan Bank for International Cooperation (JBIC).