1st-Apluma!: PHL economic future looks bright in ‘12 PDF Print E-mail
Monday, 09 January 2012 13:45

BY Ismael Amigo, Sr.

NEW YEAR’S RESOLUTION: Never ever forget to write my column throughout the Year of the Dragon. With it here we go…

A high-ranking World Bank official hinted economies of the United States and that of Europe may remain the same as they are now even as he pointed out Philippine economy may take an upward swing.

In fact, the World Bank averred Ph’s economy may grow up to 4.2 percent this year due to the full recovery of public spending and exports.

We hope that with the Season of Hope now over, WB’s economic term on public spending do not only dwell on the public’s Christmas Season spending but rather, on the Aquino Administration’s ability to keep its faucet open or flowing on public infrastructure projects this year.

The year 2011 where even our good friends in congress felt the pinch on budgetary slash on projects for public service was very much of a regretful kind of economic state as when one holds the purse on white knuckles, mula Aparri hanggang Jolo would also feel the economic pinch.

But it’s so good to note each one of us got away with and enjoyed the spirit of Christmas complete with Noche Buena kahit papano along with New Year’s Eve handaan.

To our distressed Kababayans in CDO and nearby Iligan, just have faith God is with you and all of us will be able to recover in time, in His time.  For them, there had been no reason not to celebrate the Christmas just passed for it is the time we all commemorate the birth of Jesus, our Savior.    

Back to WB’s report, it said that in its latest Philippines Quarterly Update, the Washington-based lender said the country’s gross domestic product (GDP) is projected to grow 4.2 percent in ’12 from an earlier forecast of 5 percent.

GDP refers to the total value of final goods and services produced in the country.

“Higher 2012 growth hinges on improvement in exports, acceleration of PPP projects and private sector investment, and a full recovery of public spending with possibly a medium-size fiscal stimulus,” the lender said.

For this year, the economy is projected to grow 3.7 percent from an earlier forecast of 4.2 percent.

“Our projection hinges on the successful implementation of the government’s disbursement acceleration program and an acceleration in private consumption and investment, which have begun to grow faster in the last quarter. In addition, lower growth in the fourth quarter of 2010 should provide the added base effect boost. Significant downside risks largely stem from the weaker external environment and less than satisfactory public spending,” the World Bank report said.

The Aquino administration earlier announced a P72-billion disbursement acceleration plan to ensure that the budgeted items are spent by year end to boost the economy.

The economy grew by 3.6 percent in the first three quarters of the year because of weak exports and government spending.

The World Bank also said that the growth prospects in the medium to long-term could be sustained at above 5 percent, provided that reforms to address structural bottlenecks are implemented.

It may be recalled that WB accordingly released P2.2 billion in financial assistance to the Philippine government for the full recovery of areas hit by “Sendong.”

If handled properly, said assistance could keep Ph’s economy afloat until next Christmas along with the government’s plan for “all-out, extensive spending on infrastructure projects this year.

Indeed, the Philippine economic future looks bright in the Year of the Dragon you may even consider wearing shades. — Email esns03@yahoo.com/ Mobile 0915-5517486