NEDA: Economic prospects bright for rest of the year

Economic prospects in Central Visayas for the 3rd and 4th quarter of this year are expected to grow due to the upbeat performance of the construction industry, brisk tourism and high demand of properties by Overseas Filipino Workers and the expansion of exports from January to June 2006, a report from the National Economic Development Authority said.

During the Development Administration Committee of the Regional Development Council meeting last week, NEDA-7 reported growth realized in the first half of the year is anticipated to continue into the second half of this year as the holiday season and the 12th ASEAN Summit draws near.

The report said that consumer spending is expected to increase along with higher OFW remittances and tourist arrivals.

NEDA explained that prospects of the mining industry remain bright with the reopening of the Toledo Mines in Cebu by yearend. Atlas, returning to operation, is expected to generate substantial foreign exchange earnings of up to US$1.885 million annually and employment of up to 3,000 workers.

Meanwhile, expansion of other complementary industries that serve as end markets of the region's mining products also give positive expectations for mining industry players. Examples of these industries are the steel, cement and nickel industries.

Local economic observers also said that the holding of the 12th ASEAN Summit in the region in December may open doors to new investments and markets for the region's export products.

According to the Cebu Organizing Committee of the summit, the event will serve as an opportunity for Central Visayas to showcase its products and potentials as host to various industry and business ventures and events.

As these activities propel the region's economic prospects, NEDA has also identified development issues and concerns that need to be pursued -government efforts to curb red tape and corruption at the national and local levels should be seriously pursued.

NEDA added that the growing clamor for the direct payment of excise taxes by large-scale mining companies to the host local government units is also needed. The practice of large-scale mining companies of paying their excise taxes directly to the national government has been contested by the LGUs saying, that it deprives the host LGUs of their excise taxes and the opportunity to immediately use their revenues shares for priority projects.

NEDA also explained that the exodus of its designers to other countries, primarily China, threatens the furniture industry, which is among the top export sectors of the region. This has led to the shortage of competent designers in the industry that can affect the ability of the industry to generate substantial export earnings.

However, these issues and concerns do not necessarily dampen the economic prospects of the region as all these have been considered in the government's Medium Term Public Investment Program, which is part of the government's plan to sustain economic growth and spread progress to all areas of the country through the Mega-Region economic development strategy. - Wenna A. Berondo/BRP