Philippine economy grew 3.7% in Q4, more slowly than the 7.6% it grew in 2010, dragged down by European debt crisis, weak U.S. growth

MANILA, Philippines , January 30, 2012 () – The Philippine economy grew 3.7 percent in 2011, much slower than 7.6 percent the previous year, as it was dragged down by lower exports and public spending.

The economy slowed amid Europe's debt crisis and weak U.S. growth.

Public spending also declined while the government of President Benigno Aquino III put in place measures to curb corruption and canceled suspect contracts that had been signed by the previous administration.

Gross domestic product expanded 3.7 percent in the last quarter of 2011 compared with 6.1 percent in the same period of 2010. The services sector helped cushion the impact of the slowdown in Europe and the U.S.

The International Monetary Fund forecasts the Philippine economy to grow 4.2 percent this year.

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