NEWSFLASH

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SOCIOECO PLANNING SEC SAYS NO RECESSION

Manila, Feb. 16, 1998 - "The possibility of recession is slim. We are not seeing a recession, we are looking at a slowdown. And indicators show we will continue on the growth path." said Socioeconomic Planning Secretary Cielito Hibito.

The government is forecasting a 3 to 4 per cent in Gross National Product (GNP) and a 2 to 3.5 per cent in Gross Domestic Product (GDP) this year. Hibito said GNP is the broadest determining factor of economic output in the country which includes the contributions from Overseas Filipino Workers (OFWs).

The Philippine government described the 1997 full year-growth rates as "a little over the official target rates" with almost all sectors hitting significant declines. Agriculture dropped to 2.8 from 1996's 3 per cent. Manufacturing and utilities slowed down also but the exports of semiconductors, microcircuits and finished electrical machinery remained high.

The slowdown came from several factors like the impact of the depreciation, the El Nino phenomenon and the slump in the property and banking sector. Still the biggest impact came from the currency crisis.

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