Bizman: 2012 economy will be shaky, but not alarming

CITY OF SAN FERNANDO -- Advocacy for the Development of Central Luzon chairman and Pampanga Chamber of Commerce and Industry Inc. vice chairman Rene Romero opined just before the onset of the New Year that the economy in 2012 will be “shaky but not alarming.”

Romero said the economic slowdown during the last quarter of 2011, despite the government’s release of a stimulus package, has made the business sector “nervous” and concerned if the Aquino administration will not make changes in its development programs.

“Personally, I and some of my fellow businessmen feel nervous, though not totally alarmed, by the economic scenario for 2012. The 2011 GDP (gross domestic product) was only 3.6 percent and a bit off the target of 5.5 percent. Until the last quarter of 2011, there was very little government spending and no real notable public-private partnerships that resulted into economic slowdown. If the National Government will not make amendments to its programs in infrastructure, health, education and basic services, the economy will be dimmer in 2012,” he said.

He told Sun.Star Pampanga that coupled with disasters, external threats will also affect this year’s economic landscape.

“Internationally, the looming crises in the US and Europe will overflow to us. China’s economy, which has boomed fast, has also overheated. If our economy is not prepared and protected for the worst, the country will face the same problem by 2013. It’s good that our OFWs (overseas Filipino workers), with their billions of remittances, are keeping the economy afloat. Added to that, foreign aid like those granted by Jica, has helped in infusing money into the economy. But if investments will not come in, there would be diminished purchasing power and as I see it, by January 15, inflation might rise,” added Romero.

He said that in his own company, preparations are underway for what he branded as a “Signal No. 3” economic typhoon.

“We have to prepare for the worst and continue to find opportunities in threats. The 2012 economy, in my opinion, will depend largely on government programs as well as on its thrusts to attract foreign investments to avert any further slowdown and collapse,” Romero said.