Economy is Getting Better

To unexpected circumstances, the economy grew at 7.1 percent this Philippines third quarter, compared with 3.2 percent slack in 2011.

Reported by the National Statistics Coordination Board that economic growth is caused by the implemented ‘service sector’ like ‘robust performance’ of transport, storage and communication, financial intermediation, real estate, Renting and business activities and agriculture.

The palace of Malacañang is pleased to this news that beats economy on the other countries in Southeast Asia such as Indonesia which recorded a 6.2 percent said the Gross Domestic Product (GDP), Malaysia with only 5.2 percent, Vietnam with 4.7 percent, with 3 percent Thailand and Singapore with 0.3 percent.

“We were very pleased with the news that was relayed to us by NEDA director general Arsi (Arsenio) Balisacan and certainly it was beyond our expectations. We knew that it was going to be a good number,” said the presidential spokesperson, Edwin Lacierda.

Lacierda also assured of not only the entrepreneurs benefit from the growth of our GDP but also felt by ordinary people across the country.

In this regard, said the progressive legislators in the Lower House of Congress to hint that the Aquino government to the Filipino people of the country’s economic growth by providing employment and reducing poverty in the country.

2 completed Japan-funded projects rated satisfactory

The National Economic and Development Authority and Japan International Cooperation Agency (JICA) have rated two Japan-assisted projects as satisfactory in an ex-post evaluation conducted recently.

NEDA said the Fisheries Resort Management Project (FRMP) was given an overall rating of satisfactory, while Metro Manila Strategic Mass Rail Development Project (LRT2) received an overall rating of moderately satisfactory. The FRMP is a six-year project under the Department of Agriculture-Bureau of Fisheries and Aquatic Resources (DA-BFAR) and was formulated in response to the issues of fisheries resource depletion and poverty among fisherfolk.

The project is designed to foster municipal fisherfolk participation in resource management and enhance government capability. Its estimated cost was Â¥10.4 billion, of which the JICA loan amounted to ¥2.4 billion, the Asian Development Bank (ADB), ¥3.8 billion and the local funding, ¥4.2 billion. On the other hand, the P27 billion LRT 2 project was one of the priorities under the Updated Metro Manila Traffic and Transport Management Plan aimed at improving the traffic condition in Metro Manila. It involved the construction of a new mass transit line with a train that could carry about 1,650 passengers. LRT Line 2 runs from Manila via Quezon City to Pasig City.

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Delays hit 1 in 3 ODA-funded projects

Procurement woes hamper implementation.

MANILA, Philippines – One in three foreign-funded projects remains hobbled by delays despite general improvement in disbursements in the first semester, according to the National Economic and Development Authority.

Neda reported that 31 ongoing official development assistance (ODA) projects had used less than half of funds released “due to procurement-related and financial processing issues and other issues such as right-of-way.”

Data from Neda showed that a total of $826.6 million in ODA money was disbursed from January to June, an increase of 96 percent from the same period of 2008.

Ongoing projects covered under 91 loans account for a total of $8.07 billion.

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Recession unlikely for RP

New York based think tank Global Source said that the Philippines would likely avoid a recession this year but would have a snail’s pace growth through next year. Deputy Director General Rolando Tumpalan of the National Economic and Development Authority (NEDA) reported this on Tuesday, during the weekly Cabinet meeting held in Bukidnon province in southern Mindanao.

Last week, the World Bank made a similar forecast.

Global Source predicted that the domestic economy would grow by 0.5 percent to 1 percent this year, revising its previous forecast of a 2.5-percent growth. This new forecast is slightly more bearish than the government’s latest official gross domestic product (GDP) forecast expansion of 0.8 percent to 1.8 percent. GDP is the total value of goods and services produced in a country in a year.

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San Miguel’s Laiban bid remains unchallenged

MANILA, Philippines – San Miguel’s bid to build a dam seen to become Metro Manila’s future water supply source remains unchallenged, officials disclosed during a Thursday briefing.

Despite allowing a bidding extension deadline, [the Metropolitan Waterworks and Sewerage System] waited for the challenge of another private sector entity but none came,” Diosdado Jose M. Allado, the agency’s administrator, said.

MWSS administrator Diosdado Jose M. Allado (right) ponders the point explained by one of his deputies at a Thursday briefing. Allado said the Laiban dam, proposed by San Miguel Bulk Water Company Inc., is still subject to a competitive challenge. Ruby Anne M. Rubio

From February 9 this year until July 16, no private sector entity has expressed intentions to challenge the unsolicited proposal of San Miguel Bulk Water Co. Inc. (SMBWCI), officials added.

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Govt rejects higher oil taxes

World Bank’s proposal not a priority, says NEDA.

The Philippines on Wednesday brushed off a World Bank suggestion that it raise oil taxes to shore up revenues, saying it did not wish to hit people in the pocket amid a slowing economy that has already crimped consumer spending.

Raising oil taxes “will have a dampening effect on the economy since higher prices will discourage consumer spending,” Socioeconomic Planning Secretary Ralph Recto said in a statement.

“We do not believe that a further [oil] tax increase should be a priority in the short term,” he added.

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Worst over for RP economy

The global crisis is not over, but the worst is over for the Philippine economy,” a senior economic official said on Wednesday.

Dennis Arroyo, the director of the national planning and policy staff of the National Economic and Development Authority (NEDA), though, added that while the global economy seems to be “turning the corner,” the recovery will take time.

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RP economy to grow at its slowest in a decade

MANILA, Philippines – The Philippines likely grew at its slowest in a decade during the first three months of the year, a senior economic official conceded on Monday.

The country’s economic output grew anywhere between 2.1 to 3.1 percent, Socioeconomic Planning Secretary Ralph G. Recto told reporters, citing preliminary estimates.

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RP may hike deficit cap as it expects fewer taxes

MANILA, Philippines – The Philippines may increase its budget deficit ceiling this year, after recognizing that the global turmoil will have a deeper impact on the government’s revenue collections, the National Economic and Development Authority (NEDA) said.

The technical working group of the Development and Budget Coordinating Committee (DBCC) is looking at a P184-billion budget cap, larger than Manila’s P177.2 billion ceiling, or 2.2 percent of the country’s gross domestic product (GDP).

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29 infrastructure projects incur P43.3b in additional cost—Neda report

Public infrastructure projects funded by foreign loans incurred P43.3 billion in additional costs as of December last year, because of various reasons ranging from excessive bids to changes in project scope.

Ten projects with costs overruns amounting to P14.5 billion have been completed, leaving only 19 unfinished projects.

Roderick Planta, director of the National Economic and Development Authority’s Project Monitoring Staff, said among ongoing projects, cost overruns were incurred by 19 projects, including the NorthRail project and NorthRail-SouthRail Linkage project.

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