Prioritize RP economic recovery–PCCI

MANILA, Philippines — Economic recovery should be on top of the county’s list of concerns notwithstanding the impending 2010 elections, charter change talks and various discussions of politicized issues, Philippine Chamber of Commerce and Industry (PCCI) president Edgardo Lacson pointed out.

“We are experiencing [one of the most] severe economic crisis since World War II and we should focus our energy addressing these issues. Cha-cha talk can wait because it is politicized. Our main occupation as a nation now should be economic recovery,” he said.

Lacson cited the immediate implementation of the stimulus package as a step towards economic recovery.

“The stimulus package must be placed on ground. It is a needed cure in the economy now,” he said. The administration’s P330-billion economic stimulus fund is still under discussion.

“The P330-billion stimulus spending will greatly help the economy. Right now consumers are holding back. If we have the funds for spending on infrastructure, this will then have a multiplier effect; there will be employment for labor, etc.,” Lacson told INQUIRER.net.

The country’s external debt fell by $1 billion to $53.9 billion in 2008 from $54.9 billion at the end of 2007 as both the public and private sector prepaid some of their outstanding foreign obligations.

Lacson believes that any foreign help will be good for the Philippines.

“Any help we can get is always good. Maswerte tayo ‘cause we’re not dependent on exports like Korea,” Lacson told INQUIRER.net.

According to Lacson, 80 percent of the country’s gross domestic product (GDP) is locally consumed, thus the Philippines is not dependent on the revenue generated from exporting goods to other countries whose economies — and spending — have been affected by the financial crisis.

Lacson attributed overseas Filipino workers’ remittances as a power source that keeps the Philippine economy moving. “We send out like 4,000 OFWs daily, and the return is great,” Lacson said.

Currently, the banking sector is “stable and liquid,” said Lacson “so we don’t have to lose hope. The crisis has come but we will survive.”

Lacson noted that the current financial situation is difficult to predict, and certain advocacies must be pushed.

“This crisis, which is not our doing, no one can predict. The stock market is supposed to serve as the barometer of economy but there is no trend. Economist themselves cannot predict the situation. What PCCI and BPO are pushing for is F.I.R.E.: Food security, Infrastructure development, Re-education and Energy self-sufficiency,” he said.

“Right now we cannot rely on foreign or international markets. We have to strengthen our domestic economy and we can do this by building infrastructure, re-education, re-tooling our curricula — these will not only strengthen the economy now, but it will also help us become more globally competitive,” Lacson said. –Erika Tapalla, INQUIRER.net