A man arranges his peso bills inside a currency exchange shop Friday, Nov. 9, 2007, in Manila, Philippines. The dollar closed Friday at 42.795 pesos, where the peso rose to a new seven-year high on prospects of further U.S. interest rate cuts and likely increases in remittances from Filipinos overseas.  (AP Photo/Pat Roque)

A man arranges his peso bills inside a currency exchange shop Friday, Nov. 9, 2007, in Manila, Philippines. The dollar closed Friday at 42.795 pesos, where the peso rose to a new seven-year high on prospects of further U.S. interest rate cuts and likely increases in remittances from Filipinos overseas. (AP Photo/Pat Roque)

MANILA, Sept 22 (Mabuhay) — The Asian Development Bank (ADB) revised its growth forecast for the Philippine economy this year amid a slowdown in major industrial economies and China and the impact of El Niño.

The Manila-based multilateral lender expects the Philippine gross domestic product (GDP) to expand by 6.0 percent from a previous forecast of 6.4 percent.

Still, the economic outlook for the Philippines remains favorable despite the external pressures, ADB Country Director Richard Bolt told reporters on Tuesday.

Improved government spending, sustained private consumption and investment, higher employment, low inflation and remittance inflows are keeping the economy buoyant, Bolt added.

What poses a threat to the outlook are the slower-than-expected growth in the US, Euro zone, Japan and China as well as the possible impact of the El Niño on rural incomes and food, water and electricity prices.

“Progress on reforms is important in sustaining the growth momentum and to create more jobs,” Bolt said.(MNS)