Election spending to boost GDP – NEDA
Manila (15 January) -- Election spending will likely boost the conservative 2.6 -3.6 percent GDP growth forecast of the National Economic Development Authority (NEDA) this year.
In a media briefing with Deputy Presidential Spokesperson Gary Olivar in Malacañang, NEDA policy and planning Director Dennis Arroyo said election spending can shore up the economy by giving an additional 0.34 percentage points to GDP.
Arroyo said the projection is based on the 2007 elections for senators, House seats and local government officials which gave additional income from television, news, rentals, food, shirts and other election materials.
Despite a possible mild El Nino, Arroyo said the NEDA is maintaining its conservative 2.6 -3.6 GDP growth forecast for this year.
Arroyo said this is even with the 3.1 percent forecast of the International Monetary Fund (IMF); 3.3 percent by the Asian Development Bank (ADB); and 3.5 percent forecast for the Philippines of the World Bank.
Arroyo said GDP growth last year will be buoyed up by the significant fourth quarter recovery of the export sector, including the remittances from the overseas Filipino workers (OFWs).
The fourth quarter growth of exports in 2009, according to him, will likely pull up the projection of 0.8 percent to one percent or a bit higher.
"The fourth quarter will likely pull up the 0.8 percent projection for 2009," he said adding that 2010 will be a bit better with the worst of the global crisis in 2009.
Arroyo and Olivar said however the next administration faces the challenge of handling the economy and continue the government's pump priming and other economic agenda.
Arroyo advised the next administration to continue increasing the collections of the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) to increase infrastructure and social spending.
Arroyo said this include the administration's spending on vital infrastructure such as roads and bridges to spur economic activities particularly in the provinces. (PIA) [top]