Philippine government cuts growth outlook for 2007

The Philippine government Wednesday cut its economic growth outlook for 2007 to 5.7 percent from between 6.1 and 6.5 percent which was set previously, mainly because of rising oil prices.

Philippine Budget Secretary Rolando Andaya made the announcement while presenting the government's 1.137 trillion peso (22 billion dollar) budget plan for next year, which is aimed at realizing economic goals set by President Gloria Macapagal Arroyo in her State of the Nation Address last week.

The 2006 budget still remains deadlocked at the Senate, which has been at odds with the Arroyo government since last year.

The Philippine government expects gross domestic product to grow between 5.5 percent and 6.2 percent this year, after the country's GDP growth of 5 percent last year.

The government expects inflation to average between 6.9 and 7 percent this year, compared with a 7.6 percent inflation last year.

Source: Xinhua