NEWSFLASH

---

RP ECONOMY REGISTERS GROWTH DESPITE CRISIS

Manila, Feb. 2, 1998 - The Philippine economy continued growth despite the currency crisis which saw the peso's value plummet vis-a-vis the US dollar.

Government figures released recently showed that the 1997 Gross National Product (GNP) grew 5.8% and Gross Domestic Product (GDP) went up 5.1% in 1997.

Growth was led by the construction sector and electronics exports, which offset the slowdown in manufacturing, finance and real estate sectors.

Analysts say that as long as the government sticks to a program of fiscal discipline and economic reform, the country should be able to survive the financial crisis plaguing the region.

"If we maintain our fiscal discipline, quickly address the dollar liquidity situation which means negotiating with the International Monetary Fund, we have better chances," said Joey Cuyegkeng, research director for ING Barings Securities.

The Philippines is seeking a $2 billion standby facility under a planned precautionary arrangement with the IMF.

---