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Economy to get Worse
The economy is expected to worsen in the second half of this year as the trading partners of the country have not yet shown any recovery. This was gathered from the briefing given by NEDA 10 for members of media.
Every quarter NEDA gives a briefing to members of media on how the econmy is doing and what is expected in the next few months.
In the briefing given by Engr. Cecilio Y. Clarete, Chief of EDS, Knowledge Management, the Gross Domestic Product of the country could go up if there is an increase in government spending because of the Emergency resiliency Plan; the expenses of canduidates for the election of 2010 would already start and there would be other domestic improvements such us increase in tourism, the lowering of borrowing rates by the Banko Sentral and enflation stays low.
What is unfortunate is that these are not expected to improve as government is having difficulty in keeping its budget deficit low. The revenues of the national government has been deteriorating and this is expected to go down some more as business experience low sales and revenues.
The election spending is not expected to start until the end of the 1st Quarter of 2010 and tourism figures remain low because of the threat of A H1N1. These are some of the domestic improvements that the fiscal authorities were hoping will rise to boost the economy.
In his report, Clarete pointed out that the damage to the world economy is getting worse as it has affected the major countries most of which are trading partners of the
The report from the
Although there are countries who have predicted a start of the recovery by this quarter or maybe the next, the
As an encouraging note however, 2010 being an election year, more circulation of money is expected because of the expenses of candidates in their sorties and campaigns. This will definitely boost the econmy as it always does in the past.
In a meeting of Finance Ministers of the G8 countries early this month they said that “There are signs of stabilization…but the situation remains uncertain and significant risks remain to economic and financial stability.”
Philippine exports have contracted in 2008 and in the 1st quarter of 2009 and its trajectory is downward and alarming with a 40.6% contraction for the 1st quarter of 2009.
“Export performance is expected to worsen in 2009. The economies of the top 10 destinations of Philippine exports, which account for about 84% of total exports, are all projected to deteriorate in 2009,” said the NEA report.
Inflation rates however are easing, and there is a modest improvement in labor and employment indicators. In spite of this however, the GDP projections for the country have been downgraded from 3.1-4.1 in February to 0.8-1.8 in May.
The call of NEDA is for people to spend whatever they have so as to give the economy a chance to improve.
“The normal reaction is to save in times like these. Our advice is to spend so as to increase the amount of money in circulation,” Clarete declared.
Representatives of government agencies take turns in briefing members
of local media on the status of the econmy and the projections for the rest of
2009 in a Media briefing at NEDA 10. Photo by Ed Montalvan/PPA-CdeO





























































