Palace justifies 3.7% economic growth in 2011

MANILA, Philippines – Malacañang justified yesterday the country’s 3.7 percent economic growth, saying that the government made investments in social services and the administration would implement measures to further improve the economy.

Deputy presidential spokesperson Abigail Valte said the recent Social Weather Stations (SWS) survey conducted from Dec. 3 to 7 last year showed that self-rated hunger was statistically identical to the results of the September 2011 survey.

“Combined with the noticeable decrease in self-rated poverty from 52 percent to 45 percent based on the SWS fourth quarter survey, this indicates that policies to promote inclusive growth are beginning to take effect,” Valte said.

“We continue to aggressively pursue programs to address the needs of vulnerable sectors by expanding the coverage of the Pantawid Pamilyang Pilipino Program (4Ps) also more commonly known as the CCT (conditional cash transfer) program through a P39.5-billion budget. We are also continuing the implementation of the Social Pension for Indigent Senior Filipino Citizens, the Supplemental Feeding Program of the DSWD (Department of Social Welfare and Development), and the Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services (KALAHI-CIDSS),” she added.

The economy grew by only 3.7 percent last year, below the lower end of the revised target range of 4.5 percent to 5.5 percent for 2011, the National Statistical Coordination Board (NSCB) reported.

The lackluster growth is much slower than the 7.6 percent gross domestic product (GDP) expansion recorded in 2010, NSCB secretary- general Romulo Virola said.

Officials blamed the economic crisis in the United States and Europe, saying this affected export revenues.

Valte said the government is also pursuing the inter-agency convergence on the part of DSWD, the Department of Education, the Department of Health, and the Department of the Interior and Local Government to ensure that beneficiaries avail of education and healthcare services.

“These are investments in human capital development that enable the people to take charge of their lives,” Valte said.

Valte added there was much to be done in terms of improving the economy and the people’s condition.

“This is a problem that cannot be solved overnight and we recognize the fact that we need to continue pressing on these programs to make sure that (any growth) trickles down to those who are really in need,” Valte said.

Valte said there was a slight momentum in the economy based on the gross domestic product’s quarter-to-quarter figure.

“If you note… from second quarter last year, it was at 3.1 (percent); third quarter, 3.6 (percent); and fourth quarter, 3.7 (percent). So we will be taking advantage of the slight momentum that seems to be indicative from the figures that we have,” Valte said.

Valte said the government’s supposed lackluster spending should not be seen as the only reason why economic growth was feeble.

“We cannot agree totally that external factors did not affect. Obviously, we saw when the twin tragedies struck Japan, which is one of our biggest markets for exports for semiconductors, (the economy) was affected. The debt crisis in Europe also had an impact,” Valte said. The United States’ economy has also slowed down.

“As such, we have set a new target for 2012 for the GDP. We believe it’s a fighting target and due to also external factors that will come from economies outside of ours that do have an impact on our economy. Following the pronouncements of the President on this, we will be focusing on increasing domestic spending and primarily gear towards the key priority areas, namely infrastructure and agriculture,” Valte said.

Valte said the government would make sure that growth would be inclusive as that would be more beneficial.

“We will certainly be exerting our best efforts to meet the target (for 2012), And, as such, the President has already made several pronouncements on this and the concerned agencies will be following suit,” Valte said.

The NSCB said that the growth for 2012 could even reach 7.18 percent if there would be additional spending for health and education.

Gov’t housing to boost economy

Vice President Jejomar Binay said the government would continue to invest in housing projects to boost the economy.

“I work for the housing sector and the activities of the housing sector are pump-priming the economy. It’s just time probably to inform our countrymen that the President gives special attention to (providing) shelter,” Binay said.

“We had coordinated with the local governments and the private sector so we can produce (housing units) and minimize (the number of) those who do not have houses,” he added.

Binay is also the chairman of the Housing and Urban Development Coordinating Council.

Officials said the slower growth of the country’s economy was affected by the economic crisis in the US and Europe.

“Unfortunately, a myriad of external shocks has buffeted the economy since the beginning of the year,” said Socioeconomic Planning Secretary Cayetano Paderanga Jr. last Monday.

“Several typhoons, flooding, and low pressure areas affected agriculture and infrastructure during the year,” he added.

Binay said the government aims to provide about 300,000 housing units this year. He said they managed to produce about 250,000 to 300,000 units last year.

He said his agency has been challenged to produce 3.6 million housing units.

Binay also vowed to continue looking after the welfare of overseas Filipino workers (OFWs), whose remittances have been keeping the domestic economy afloat.

“We always help them. They are regarded as new heroes because without them, we would have experienced huge problems,” said Binay who is also the Presidential Adviser on OFWs’ Concerns.

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed that OFWs had sent home a total of $18.3 billion as of November 2011. –Aurea Calica (The Philippine Star)
with Alexis Romero