PHILIPPINES, IMF SET TARGET OF 3 PERCENT GROWTH IN GNP

PHILIPPINES, IMF SET TARGET OF 3 PERCENT GROWTH IN GNP

Philippine government and International Monetary Fund officials have agreed to pursue a gross national product growth of 2 percent to 3 percent and an inflation rate of 7 percent, the Department of Finance said in a recent prepared statement.

These figures compare with estimated GNP growth last year of 0.5 percent and average inflation of 17.5 percent.The final budget deficit level must still be threshed out. The IMF wants a 1992 deficit of US$144 million (3.8 billion pesos), while the Philippine government is hoping for 13 billion pesos.

The government wants the higher level to cover the cost of reconstruction in western Central Luzon, which was devastated by the eruption of Mount Pinatubo last year. The programmed deficit for 1991 was 26.6 billion pesos.

The National Economic and Development Authority estimated the rehabilitation work would cost 20 billion pesos. The authority, however, will present its final estimate to cabinet this week.