The ADB expects the Philippine economy to grow 4 per cent this year and 4.5 per cent next year, citing an improved export performance and an increase in domestic consumption as key factors.
Although the figures were slightly lower than last year's 4.6 per cent growth in gross domestic product and the government's 2003 GDP growth projections of 4.2 to 5.2 per cent, the ADB said in a press conference yesterday that the forecast was still a sign of robust growth and predicted that the country would regain economic output levels prior to the 1997 Asian financial crisis.
The ADB admitted that the possible effects of the SARS scare was not yet factored in the Philippine forecast, saying the extent to which SARS would impact on the local economy was still undetermined.
