PRESIDENT Arroyo on Wednesday boldly asserted that the Philippines is strong enough to withstand the US economic slowdown and will not be derailed from its “permanent growth path.”

Addressing the Swiss Chamber of Commerce in Zurich, Switzerland, the first leg of her week-long trip to Switzerland and the United Arab Emirates, the President sought to convince potential investors to channel their funds to the Philippines, which has grown economically stronger despite external and internal challenges.

“We are vigilant that our efforts will not be derailed by the subprime crisis and the subsequent credit crunch in the US. And we count on the Central Bank governor and his team who operate independently to continue to ensure stable macroeconomic fundamentals to support our robust economic growth during a time of continued global economic volatility,” she said.

The President noted that at a time of global economic uncertainty brought about by the US recession, “it helps that we have one of the best and most awarded Central Banks in the world which has helped the Philippines achieve a stable macroeconomic environment that is making us more resilient to external volatility.”

She said she believes that the Philippines can continue on its permanent growth path because its 7.1-percent growth in the first three quarters of 2007 was “not export-led but domestic-oriented led”.

The President added that when she started out in 2001, the US market accounted for 28 percent of Philippine exports, but it has since shrank to 18 percent because the export sector has diversified its market.

“Our growth in 2007 was not export-led, it was domestic-oriented led. It was led by investments and led especially by government investment in infrastructure. Is this sustainable? Yes, it is sustainable, because we have spent a lot on infrastructure and yet we brought our budget deficit down,” she said.

The Philippines has learned from the 1997 Asian crisis by undertaking financial and fiscal reforms to make it more resilient against such shocks, said Arroyo.

Seeking to entice Swiss investors to set their sights on the Philippines–particularly in the areas of business process outsourcing, mining, technology, medical tourism–the President said “there is no better time for investors to take advantage of the many opportunities created by our strengthening economy,” a point that she repeated throughout her speech.

She said the Philippines managed to achieve 28 consecutive quarters of economic growth, a feat unmatched by its neighbors, and low inflation rates, which she called “signs of stability.”

The Chief Executive also noted that the Philippine stock market “has reached historic heights” and managed to rise by 79 points as markets across the world tumbled on Tuesday.

“All these indicators make me feel that I can say that the RP offers one of the best values in Asia for investments. Good macroeconomic indicators did not come by accident. Over the last seven years, our administration and our people have aimed high. We have met the challenge of economic and fiscal reform,” she said.

Mrs. Arroyo said the Philippines offers a strategic location in the fast-growing Southeast Asian region, equipped with a well-educated and English-speaking workforce.

The President said efforts have been made to simplify requirements for doing business in the Philippines, drawing big-ticket investments from Texas Instruments, Hanjin, Marubeni and Tokyo Electric.

She said the BPO sector in the Philippines has a potential growth of 40 percent every year from 2007 to 2010, “which puts it on track to double its global market share every year.”

The President said the Philippines has emerged as a leader in outsourcing, as proven by its choice as the outsourcing destination of the year for 2007 by the UK Outsourcing Association.

Palace officials tried to look at the bright side of the US economic slowdown and said such may mean more outsourced business for the Philippines as foreign companies implement cost-cutting measures to cope with the global financial crunch.

“In some respects, it might result in increases in BPO investments in the Philippines as international companies seek to further reduce their costs,” Press Secretary Ignacio Bunye said in a statement.

At the Cabinet meeting on Tuesday, Finance Secretary Margarito Teves said that “while a possible slowdown or recession in the US economy could dampen the growth of emerging markets, the  Philippines will likely withstand the adverse effects of such a development largely because of its improving economic fundamentals.”

Executive Secretary Eduardo said in his weekly news briefing that the Philippines may be more fortunate than other economies in the region as the US recession is happening when its economic fundamentals are strong and when its programs are nearing completion.

He said the President has ordered the Cabinet to speed up the implementation of all government projects “in order to cushion the effect of recession in the US.”

PRESIDENT Arroyo on Wednesday boldly asserted that the Philippines is strong enough to withstand the US economic slowdown and will not be derailed from its “permanent growth path.”

CLARK FREE PORT—Investments in the Clark Free-port Zone here grew by a hefty 400 percent last year compared with the 2006 figures, Clark Development Corp. (CDC) president Levy Laus revealed here Wednesday.

POWER market operator Philippine Electricity Market Corp. (PEMC) said on Wednesday the Visayan operation of the wholesale electricity spot market (WESM) will be delayed to allow further time for participants to complete registration and test their market-trading interface systems.

THE National Economic and Development Authority Regional Office II (NRO II) in Tuguegarao has already piloted the P27.15-million worth National Geographic Convergence Program in Isabela.

MANY of the country’s problems in trade and the economy in general are rooted on the flawed economic policies and political unrest during the post-World War II period, according to a former agriculture official.

THE Cebu provincial government and towns in northwestern Cebu are drafting a master plan to develop the area into a tourist attraction while protecting its natural resources.

DTI Direct serves a mechanism for adopting a “no-wrong-door policy” in order to provide fast, reliable and uniform customer support with just one number to call: 751-3330. This system was devised to save clients the time and frustration of being given the runaround by providing their needed information or assistance at the soonest time possible.