Philippines lowers 2008 growth target: report

The Philippines has lowered its 2008 growth target to between 6.0 and 6.7 percent from the original range of 6.3 to 7.0 percent, a cabinet secretary was quoted on Monday as saying.

Socioeconomic Planning Secretary Augusto Santos said the new figures reflected the global economic slowdown, particularly in the United States, and the sharp rise in food and fuel prices, the Philippine Daily Inquirer reported.

"We have to revise because there will be slower growth as production is affected by increasing oil and food prices," Santos said, according to the paper.

The inflation rate forecast for 2008 has also been raised from 3.0-4.0 percent to 4.0-5.0 percent, said Santos.

Last year Philippine gross domestic product (GDP) grew by 7.3 percent, the highest level here in more than three decades, while inflation slowed to a 20-year low of 2.8 percent.

The International Monetary Fund last month forecast Philippine growth for 2008 at 6.0 percent unless key reforms were implemented. The Asian Development Bank has put it at six percent while the World Bank forceast was 5.9 percent.

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