Government spending to drive 2012 PHL economy, says Paderanga

Higher government spending is expected to grow the Philippine economy by more than 5 percent this year, meeting the official forecast of 5 percent to 6 percent, according to an economic manager of the Aquino administration.   “We’re hoping it could be higher than 5 percent,” Socioeconomic Planning Secretary Cayetano Paderanga Jr. told reporters at the sidelines of an investment forum Tuesday.   “We know that we will be spending more in infrastructure. Budget spending this year will be much more efficient than last year,” Paderanga added.   The Aquino administration has allocated P19.6 billion in counterpart funds for government’s public-private partnership (PPP) program, from last year’s P12.5-billion counterpart budget.   The Department of Transportation and Communications (DOTC) will get P8.6 billion from the PPP allotment to prop up its PPP projects, of which P6.6 billion will be used to develop the Panglao Airport in Bohol, the Puerto Princesa Airport in Palawan, and the New Legazpi Airport in Albay.   Thus, Paderanga said public construction will be a major growth driver for 2012.   Asked if he supports the Department of Trade and Industry’s 6 percent to 7 percent forecast in gross domestic product growth this year, Paderanga said, “I would like to agree with that.”   National Statistical Coordination Board (NSCB) reported last month the Philippine economy grew by 3.7 percent last year. The same report showed that the economy grew 7.6 percent in GDP terms in 2010.   Exports are likely to recover this year as the global economy, particularly the US and Europe, starts to stabilize, said Paderanga. “It looks like the US has already turned the corner,” Paderanga observed.   The sputtering US economy and the financial meltdown of some single currency economies in Europe, the disruptive impact of the Arab spring and the natural and nuclear disasters in Japan were largely blamed for the weak global demand last year. — VS, GMA News