This has led to the appreciable decline in the country’s total external debt to 35.5 percent of GDP as of end-March 2008 from 72.9 percent in 2001. What is the outlook in the near-term? Reflecting the impact of the slowdown in the US economy and the higher oil and food prices, economic targets have been revised.
The government now projects GDP to grow by 5.7-6.6 percent while the forecast for inflation is at 9-11 percent. The BOP surplus will reach $ billion. Exports are seen to grow by 5 percent while imports will expand by 10 percent due to higher prices of oil and food imports. What can you expect in terms of the BSP’s policy thrusts?