International Monetary Fund Managing Director Christine Lagarde cited the “critical role” played by the Philippines and other emerging markets in the Asia-Pacific region in driving global growth which she said has helped stabilize the economies of this part of the world.
Lagarde, who is on a two-day visit to the Philippines, told reporters in a press briefing in Malacañang on Friday that this critical role could be used and reviewed by other economies as a way to stabilize theirs from the effects of an economic crisis sweeping the globe.
“Emerging Asia countries such as the Philippines have been playing a critical role in the last few years. When you look at their contribution to global growth, it’s very significant particularly in the tough years that we have just gone through,” Lagarde said.
“Second, countries that have gone through crisis particularly in the Asia-Pacific can certainly teach lessons and share their experience of how to pull out of the crisis,” she added.
She pointed out that the Philippines, despite global turmoil swirling around and bringing down economies of bigger countries, have been able to post positive growth in the last couple of years.
She said that the administration of President Beningo S. Aquino III and the fiscal reforms implemented in the last two years are the main reason for the robust economic growth being experienced by the country.
“This is due in no little part to the excellent policy mix deployed both by the Secretary of Finance and the Central Bank of the Philippines, and the combination of sound fiscal policy as well as sound monetary policy,” Lagarde said.
President Aquino has expressed confidence the Philippines will be able to attain its growth target of between 5 and 6 percent this year, 6 and 7 percent in 2013, and at least 7 percent in the succeeding years.