By BLOOMBERG

MANILA • Philippine Finance Secretary Carlos Dominguez (picture) said the economy will sustain growth exceeding 6% this year, as investment and infrastructure spending help counter the impact of higher interest rates.

“We’re confident that we can weather the storms, but we’re not complacent,” Dominguez said in an interview with Bloomberg Television in Bali yesterday, when asked about inflation.

“Definitely, rising interest rates will have a detrimental effect on our growth prospects, but we’re still expecting around 6.5% growth for the whole year.”

Economic growth slowed to a three-year low of 6% in the second quarter (2Q), with the government set to report 3Q data on Nov 8. The Philippines is battling surging prices and a weakening currency that’s forced the central bank to raise interest rates by 150 basis points since May.

Dominguez, a member of the central bank’s Monetary Board, said future actions will depend on the data.

Deputy governor Diwa Guinigundo on Wednesday said policymakers are ready to tighten monetary policy further if needed.

“We will act appropriately depending on what the data shows,” Dominguez said. “If more aggressive actions are required, we will take it. If not, we will ease off.”

Higher tax revenue and “a tremendous amount” of loans from China, Japan and South Korea will help the Philippines fund its infrastructure programme that’s counted on to cushion the economy from risks such as the trade war, Dominguez said. The Philippines had aspired for a 7% to 8% growth this year, which is no longer attainable, according to at least two economic officials.

The government has enough funds and can afford to continue rejecting bids from investors seeking higher rates on bills and bonds, Dominguez said.