PCCI sees slower growth of P6-6.5% for this year

MANILA, Philippines - Philippine economic growth is seen to slow to six to 6.5 percent this year amid calamities which hit the country, business group Philippine Chamber of Commerce and Industry (PCCI) said.

“We expect the Philippine economy to grow by six to 6.5 percent this year because of the calamities,” PCCI president Miguel Varela said in a press conference yesterday.

The PCCI’s projection is lower than the 6.6-percent gross domestic product (GDP) growth posted in 2012.

Varela said that due to the damage to infrastructure and livelihood caused by the 7.2-magnitude earthquake which hit Bohol and Cebu as well as Super Typhoon Yolanda in Eastern Visayas, GDP growth is seen to slow to 5.5 percent this quarter and in the first quarter of next year compared to the seven percent posted in the third quarter.

“On a positive note, full-scale reconstruction – rebuilding of transport infrastructure, schools and hospitals, residential and commercial dwellings – will require massive public and even private spending and should boost GDP growth from the second quarter onwards next year,” he said.

As of end-September, the country’s economic growth is at 7.4 percent, still higher compared to the 6.7-percent expansion in the same period last year.

Varela said that given the continued significant interest of the private sector in the government’s Public Private Partnership projects, now is the time to harness the program and show that rebuilding of infrastructure in Visayas is a priority.

“Taking heed of the lessons learned from the earthquake and Yolanda, reconstruction efforts should now consider structures that are resilient to natural calamities,” he said.

He also said that while the appointment of former Senator Panfilo Lacson as reconstruction czar is a welcome development, the PCCI would want the executive to hasten the completion of his formal appointment with all the duties and responsibilities outlined and adequate support including budget put in place to carry out the rebuilding of the new Eastern Visayas.

PCCI vice chairman Donald Dee for his part said the PCCI recognizes that reconstruction and rehabilitation work in the areas affected by the calamities could not be left solely to the government, it is looking at how it could assist in the efforts.

“The damage is agri-based so we are looking to work with the Department of Agriculture on what high value crops can be put up there,” he said.

He said another area in which the group could offer its assistance is in housing as many of the residents in the affected areas are currently living in tents.