Economic Forecast of Prof. Benjamin Diokno
- GDP growth in '08 will be lower than '07
- peso will continue to appreciate
- exports will be sluggish
- local companies will be less competitive
- economic growth will be driven by private consumption
(attributed largely to OFW remittances) - inflation will be higher
- oil prices will increase
- OFW remittances will increase
(but would be offset by peso appreciation and inflation) - government consumption will go down
(due the policy to balance the budget, which is contractionary) - investment-to-GDP ratio will continue to be low
(due to political uncertainty in the Philippines and
the credit crisis in U.S.) - agriculture will continue to be dependent on the weather
- manufacture will continue to be sluggish
- foreclosures will increase (OFWs would have difficulty
amortizing their housing loans due to peso appreciation)
(Source: Fearless forecast for 2008 by Benjamin Diokno,
Business World, 13 December 2007)
