Govt finance execs sees slowdown, not recession in 2009

MANILA, Philippines - Philippine finance officials admitted Wednesday the country will suffer an economic slowdown next year but not recession as feared by top businessmen. In separate interviews with reporters after the briefing of the Development Budget Coordinating Council at the Senate, Finance Secretary Margarito Teves, Budget Secretary Rolando Andaya and socio-economic planning Secretary Ralph Recto were one in saying that the country will be affected by the global economic meltdown but it would not be as bad as others have projected. But Senator Manuel Roxas II believed otherwise, saying the fact that the country's economic managers increased the budget deficit for next year by more than 100 percent - from P40 billion to P102 billion - is enough proof that there will be a recession. Teves said they now expect a 3.7 percent to 4.6 percent growth next year. Before the economic meltdown in the United States, the country's finance managers projected a 6 percent growth for 2009. He said in layman's term, slowdown is when a neighbor loses a job and it is recession when the person loses his job. "Our economic growth for next year will be slower than what we originally presented about several months back and even last year. There will be difficulties but not as bad as a recession," Teves said. He said the government is doing everything within its control to change the environment such as putting additional budget for social services and infrastructure. "It will help in improving the confidence of the business sector. If we can generate more jobs, the people will be money to buy goods and services produced by the Philippine companies," Teves said. - Amita Legaspi, GMANews.TV