Philippines has tools to mitigate impact of global crisis: Aquino

MANILA, Dec. 7 (Xinhua) -- The Philippines has the tools to spur domestic growth in case the United States and Europe fall into deep recession, which the government would try to use as best as it can to mitigate the impact of external factors on the economy, President Benigno Aquino III said Wednesday.

Asked if the Philippines is prepared for a possible deep recession in Europe and the United States, which the Asian Development Bank has said may cut Philippine growth to 4.2 percent in 2012, Aquino said the government was doing its best but remained mindful of the volatility of the situation.

"We are preparing as best as we can... We will do everything we can. We will improve so many sectors including agriculture, but the reality is it's a global phenomenon," said Aquino.

On whether the country has sufficient tools to boost domestic growth in case the financial woes of Europe and the US worsen, Aquino said, "We have (the tools) but do we have enough? That's a question that's dependent on how badly the global economy fares."

He said on top of the problems in the major economies in the West, tensions in Iran are threatening to impede the supply of 40 percent of the world's crude oil supply, which would disrupt production and hike prices.