The government is looking at helping three major sectors next year to help boost the domestic economy, Socioeconomic Planning Secretary Ralph Recto said during the weekend.
Recto said the construction, housing and water utilities sector, if given enough support from the government, would help strengthen the local economy.
“We need to develop the domestic economy. If we concentrate resources on these sectors, we can push the domestic economy,” he said.
Developing the local economy would have a significant trickling effect, which in turn, would create more jobs, the National Economic and Development Authority (NEDA) chief said.
For instance, he noted that if the construction sector further improves, there would be employment generated in related sectors such as cement, wood, steel and other suppliers.
In the housing sector, Recto said, there could also be a domino effect. He said that if the housing sector strengthens, there would be a need for more construction workers, engineers and architects.
An expansion in the water utilities sector, Recto said, would help provide jobs and projects to contractors.
The government and the private sector have agreed to finance the P100-billion crisis fund earlier proposed by President Arroyo.
Recto said this fund could be lent to businesses, particularly those belonging to the construction, housing and water utilities sectors.
The Cabinet official believes the Philippines is still likely to expand within the 4.1-percent to 4.8-percent projection for 2008 despite the global financial turmoil.
The World Bank said the Philippine economy would grow by only four percent this year and three percent in 2009 after posting a three-decade high of 7.2 percent in 2007 because of the global economic slowdown.
For 2009, Recto said the government’s 3.7-percent to 4.7-percent growth projection remains “ a fighting target.”
In 2007, the Philippine economy grew by 7.2 percent.–Iris C. Gonzales, Philippine Star
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