RP setting up firewall vs global slowdown
The Arroyo administration is setting up a “firewall” to shield the
Presidential Management Staff chief Secretary Cerge Remonde issued the statement after the World Bank (WB) earlier warned that the country’s growth momentum would decelerate to 5.9 percent owing to the
The government is aiming for a 6.3-percent to seven-percent growth this year.
“President Arroyo is doing her best to build a firewall to protect the country’s growth rate against a global meltdown by frontloading government expenditures especially on infrastructure and by attracting foreign direct investments especially to labor intensive businesses,” Remonde said.
Secretary to the Cabinet Ricardo Saludo noted that the WB in early 2007 forecast a 5.8-percent growth for the
“We believe our hardworking people can again surprise the bank,” Saludo said.
He said the administration has boosted social services and infrastructure spending by about P100 billion this year.
Between 2006 and 2008, he said government spending — excluding debt payments — was up by P281 billion. This will offset an expected decline in global growth and lure more private investments, he said.
He said the announced 2008 investment plans of 18 major listed firms total P240 billion, up by 32 percent from last year.
Mrs. Arroyo earlier said the P1.227- trillion national budget, which she signed last month, was “an investment to the people” and would serve as the country’s buffer to the deteriorating global economy.
“It provides a buffer to mitigate the pain of a deteriorating global economy and the accompanying rise in prices, which affects food and transportation the most.”
She said against the backdrop of global challenges that include oil and rice supplies and the slowing down of world economies, the government has drawn up a plan to pump-prime the economy by increasing investments in infrastructure and the people.
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