The Philippines has been preparing for the expected recession in the US and would be able to withstand the fallout from the economic slump of one of the country’s largest trading partners, officials reiterated yesterday.
Deputy Presidential Spokesman Anthony Golez said while developed countries in Europe and Asia have officially entered into a recession in the third quarter, the economy grew by 4.6 percent during the same period.
“The President has worked to develop other trading partners,” Golez told a news briefing at the Palace.
“Before we were dependent on one or two countries but now we have more trading partners that can compensate losses in trading with the US,” he said.
In an exclusive interview with The STAR on Monday, Mrs. Arroyo cited the strengths of the economy that so far has been blunting the effects of global economic crisis.
She said the Philippine economy remained resilient because of the fiscal reforms implemented a few years back.
“Not only is the economy resilient, we were able to continue with our phase of economic development. We’re able to provide more jobs for our people and we will continue to work on the Philippine reform agenda,” Mrs. Arroyo said.
She said the government will continue its spending for infrastructure and social services that would improve the lives of the people and generate more investments.
“Because we have so far a resilient economy and a resilient banking system. So we can continue with our plans,” she said.
She said: “The other strong point is our great Filipino worker. That’s the one that complements the economic reforms.”
Mrs. Arroyo also gave assurance that the country’s food supply, particularly rice, remains secure despite the economic difficulties.
She said because of the improved revenues, the government has enough resources to buy one million metric tons of rice that would deter attempts at price manipulation.