Growth momentum will be sustained – NEDA

MANILA, Philippines - The National Economic and Development Authority (NEDA) is confident that the Philippine economy can sustain its growth momentum this year or even surpass its growth targets, a ranking official said.

NEDA deputy director-general Emmanuel Esguerra told reporters on the sidelines of the Rural Bankers Association of the Philippines (RBAP) 60th Annual National Convention that there are some factors that contribute to this optimism.

“One would hope so. There is confidence. There is some continuing optimism. Then your inflation is manageable. There is still a slack in the sense that there is still a lot of unemployment. In other words, there is room for the economy to grow,” Esguerra said, when asked if the seven percent target this year is achievable.

Esguerra assured that the economy is far from overheating.

“We are far from that (overheating) because if we are already there…there would be some indications and we are not seeing it,” he said.

Besides, he pointed out that the economic managers are handling the inflation very well.

“I think, the central bank is very capable of managing the inflation targets,” he said.

The Bangko Sentral ng Pilipinas (BSP) sees consumer prices to rising 3.2 percent and 3.4 percent for this year and the next.

The outlooks fall within the BSP’s three to five-percent target range. As of the first quarter, inflation settled at the low-end of the goal.

Esguerra also pointed out that 2013 is critical in meeting the rest of the growth targets for the next three years as this will serve as a benchmark.