Economists forecast 3.8% growth in 2010

MANILA, Philippines – The Philippine economy is forecast to grow by a more respectable 3.8 percent this year, driven by election-related spending and a continued construction boom, top economists said yesterday.

In a press briefing, First Metro Investment Corp. (FMIC) president Francisco Sebastian said the country’s economic growth would be further boosted by the conduct of a peaceful and credible national elections in May

“The confidence level of the domestic and foreign market towards the May elections is critical,” Sebastian said.

FMIC, the investment banking arm of financial conglomerate Metrobank, has tied up with the University of Asia and the Pacific (UA&P) in presenting the economic and financial outlook this year.

Sebastian said whoever wins in the presidential polls is not a major factor but “what is important is that there is no disruption in economic activities.”

“As long as the May election is successful, credible and peaceful, we do not see this as a threat to the economy,” he pointed out.

Based on their estimates, the domestic economy likely grew 1.6 percent in 2009, helped by a recovery in exports, surge in OFW remittances, increased spending during the holidays and postive growth in power sales.

UA&P economist Victor Abola added 2010 will be a year of steady growth and recovery for the Philippine capital markets, “that is, if and when no further mishaps occur in the global economy.” –Ted P. Torres (The Philippine Star)