Philippine President Gloria Macapagal-Arroyo Saturday expressed confidence that the crisis caused by soaring oil and food prices will not hamper economic growth of the Philippines, according to a report by the official Philippines News Agency.
In a meeting with a local press organization, Arroyo said she will focus her annual speech to the joint session of the Congress on July 28 on the theme of how to overcome the crisis caused by high oil and food prices, according to the report.
"There is a challenge to the world. The Philippines has prepared itself for that challenge. We have a plan to address it. At the same time, we are not losing track of our transformation of our economy. The resources we have can meet the challenges and allow us to stay on track. The Philippines offers the best value for investments," the report quoted Arroyo as saying.
Arroyo said that the Philippines has lower inflation rate than Indonesia and Vietnam, and that while some other developing countries are experiencing recessions, the country's economy is still growing with an above 5 percent rate.
She also said she will not remove the 12 percent value added tax (VAT) from oil products, which some critics have blamed for high oil prices.
She said that with the global challenge of unstoppable food and oil prices, her economic advisers have suggested that the country needs more than ever the revenues from the VAT on oil and petroleum products.
Arroyo also said she would continue distributing cash aid and subsidies to the poor to help them pay for electricity and school fees.
The Philippines has been hit by soaring oil and food prices, resulting in a 14-year high inflation rate of 11.4 percent in June.
With public discontent mounting over soaring inflation, a recent survey also showed that Arroyo's popularity rate has fallen to the lowest for all Filipino presidents since 1986, the year when former President Ferdinand Marcos was toppled.
Source: Xinhua
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