MikeLigalig.com

By Joann Santiago

MANILA, Jan. 10 (PNA) – First Metro Investment Corporation (FMIC) projects the continued expansion of the domestic economy this year as it pegs it at a range of 6.7-7.3 percent.

FMIC believes that the Philippines is expected to sustain its growth in 2011.

“We are in a new plane driven by strong consumer consumption, property, services, and even the mining sector. Agricultural production is expected to pick up in 2011 due to the more favorable weather condition,” FMIC said in a statement.

At the end of the third quarter in 2010, the domestic economy posted a 7.5 percent growth while full-year 2010 target is five to six percent.

The investment banking arm of Metrobank Group eyes inflation to stay at 3.5 percent this year, within the government’s three to five percent projection; oil prices to reach US$ 100 per barrel, remittance to grow by eight percent, the peso-dollar rate between P42-46 to a dollar.

Also, exports are seen to expand by 13-15 percent, imports by 18-20 percent, and the budget deficit to account for three percent of gross domestic product (GDP), the stock market to reach 4,800-5,000 points.

The current account, as percentage of GDP, is seen to account for about 3.4 percent of GDP while interest rate of the 91-day, five-year, 10-year and 25-year Treasury bills (T-bills) are seen to stay at three percent, 4.5 percent, 5.5 percent and seven percent, respectively.

In a briefing Monday, FMIC consultant and University of Asia and the Pacific (UA&P) economist Victor Abola said money being sent home by Filipinos abroad is projected to remain strong and increase by eight percent year-on-year this year.

This growth is the same as the central bank’s projection for 2010 from the US$ 17.3 billion in the whole of 2009.

As of October 2010, remittances to the Philippines reached US$ 15.456 billion, a 7.9 percent growth year-on-year while for October 2010 alone the inflows registered a record-high of US$ 1.67 billion. - pna

Linkback: https://tubagbohol.mikeligalig.com/index.php?topic=36307.0