Arroyo says Philippine economy has 'turned corner'

The Philippines' economy has "turned the corner" and the country will work to ensure its gains are sustainable, President Gloria Arroyo said Monday during a state visit to Singapore.
Arroyo, who was also leading a business mission to seek more investments, said her government plans to invest massively in infrastructure and education in order to boost the country's long-term competitiveness. She also said her government will not resort to short-term solutions for political gain.
"We have turned the corner on our economy," Arroyo said in a speech at a meeting organised by the Philippines-Singapore Business Council. "The Philippines is on a path to permanent economic growth and stability," she said.
"We will not sacrifice long-term gains for short-term political expediency." The Philippine economy has expanded for 26 straight quarters with growth coming in at 6.9 percent in the March quarter, its fastest pace in nearly 20 years, according to government figures. Arroyo said the investments pouring into the country, including Texas Instruments' plans to build a one billion US dollar chip plant, are a vote of confidence.
Even as the economy is now reaping the rewards of painful reforms undertaken by her government in the last few years, investments are being made to lay the foundation for continued growth, said Arroyo. "Our reforms are succeeding in attracting foreign investment," the Philippine leader said. "We are working to ensure that all these will be sustained. We are following up the pain of tax-raising measures with the gain that comes from significant investment in people and projects," she said.
Arroyo said investing in its people and the country's infrastructure is a key way to "ensure that the progress cannot be reversed." "This includes billions of pesos in education, healthcare and training along with billions in new bridges, roads and ports to upgrade the competitiveness of the Philippines," she said.
Arroyo, on her second state visit to Singapore, also expressed hopes Singapore investors will be attracted by the Philippine economy's performance.
Bilateral trade between the two countries was worth 17.03 billion Singapore dollars (11.13 billion US) in 2006, up 15.8 percent from the previous year, figures from Singapore showed.
Arroyo arrived in Singapore on Saturday before attending the World Economic Forum on East Asia, a gathering of business leaders and officials, on Sunday. She was due to leave Singapore early Tuesday for a visit to Equatorial Guinea.