No plan to scale down targets — GMA

TOKYO (via PLDT) — The government has no intention so far of scaling down its growth targets for the year despite predictions of a further slowdown in the global economy following the unprecedented terrorist attack in the United States.

In an interview at the Imperial Hotel here, President Arroyo said she will meet soon with her economic managers to reassess the country’s economic position vis-a-vis the terrorist attack in the US. She expressed confidence that there will be no need to reduce the government’s growth targets.

"Remember that our exports are down and yet we are growing at 3.4-percent gross national product. (Our) growth right now is not dependent on export. It is dependent on our own consumption, our own investments, our own government activities and remittances (from abroad)," Mrs. Arroyo said.

She said the US export market has been weak for the past years but it did not drastically affect the country’s economic condition. The US is among the country’s top three export markets.

In a press conference with members of the Japan National Press Club, Mrs. Arroyo said much will depend on how the US will react on the incident, adding appropriate measures have already been implemented by the US government.

"You don’t expect the US to be laid back on the economic impact. The US will undertake a lot of measures to prevent an adverse economic impact," the President said.

"Then that means the impact on the economies of the countries of the world, including the Philippines would not be so adverse," she said.

Economic managers shared the President’s optimism even as they said it was too early to think of revising growth targets as the full repercussions of the attack have yet to be felt worldwide.

"It’s too early to tell," Finance Secretary Jose Isidro Camacho told The STAR.

Bangko Sentral ng Pilipinas Governor Rafael Buenaventura said the incident may even hasten the recovery of the US economy which has been sluggish for years.

Buenaventura, who worked for sometime with Citibank, said the US "responds very well to a crisis."

He said the US Congress has agreed to provide at least $40 billion to the Bush administration as supplemental budget. This, he said, would spur the US economy and cushion any financial fallout from the terrorist attack.

He said US interest rates appear to be falling and that would be a positive sign for central banks in other countries to cut down on theirs.

Socio-economic Planning Secretary Dante Canlas said gross domestic product is likely to grow by an average of 4.7 percent to 5.2 percent each year until 2004.