Philippine government predicts lower GDP growth in 2005

Philippine cabinet's economic managers on Thursday forecast a GDP growth rate of 5.1 percent in 2005, lower than the official target 5.3 percent, considering high prices of world crude oil.

The economic team of Arroyo administration made the announcement during a roundtable discussion at the Development Bank of the Philippines headquarters in Makati City, local reports said.

The government's official target for 2005 GDP growth is 5.3 percent after an expansion of 6.1 percent in 2004.

Economic Planning Secretary Augusto Santos earlier said GDP growth could slow down if oil prices remain at 60 US dollars or more a barrel.

Last week, the Asian Development Bank (ADB) forecast a full year growth rate of 4.7 percent for the Philippines, on account of low investments due to the country's political instability.

In its recently released Asia Economic Monitor report, the ADB cited rising oil prices and lower exports as factors for lower GDP growth of the Philippines.

Source: Xinhua