Wednesday, January 31, 2007 Arroyo seeks higher economic growth rate in 2010
PRESIDENT Gloria Macapagal-Arroyo wants a seven percent economic growth for the country by 2010 instead of the original projection of six percent.
"If we really want sustainable growth, we should make seven percent. That's the one that would really bring down poverty. So that's why in our Medium Term Plan, we're hoping that at the end, by 2010, we are already at seven percent," Arroyo said in an interview after a roundtable discussion on the results of her trip to Switzerland.
She said seven percent is also more realistic if it includes remittances from Overseas Filipino Workers (OFWs). But she was quick to add that the projection did not come from her but from other people.
Arroyo said the growth areas of 2007 would still be the skills and labor-intensive areas, service sectors, information and communications technology and tourism. She said with Congress' approval of the budget, there will be increased investments in infrastructure, education, health and job-creating activities.
Press Secretary Ignacio Bunye said the upcoming years of steady growth shall be matched with basic social services that seek to lift up 50 percent of the country's population who still live below the poverty line.
Bunye, who is also Presidential spokesman, said the expected influx of investors and tourists in the country in the next three years would generate more than the three million jobs being targeted by the administration.
"This administration will not rest on our laurels but continue to implement fiscal reforms as well as lower the cost of doing business in the country," he said.
Arroyo said in an interview in Davos, Switzerland that she expects the economy to grow about six percent this year, up from an expected rate of 5.5 percent in 2006 and five percent in 2005.
"This is the longest period of consistent growth that we've had for a long time in the Philippines. There's no boom and bust cycle," she said in the sidelines of the World Economic Forum (WEF).
Arroyo said one company alone plans to invest US$1 billion in the Philippines. She declined to name the company, saying the officials are still making plans with their strategic partners.
She also said she has asked Teletech, one of the biggest business process outsourcing companies in the world, to expand its investments to the Bicol region, Valencia town in Negros Oriental, and Davao City.
She told Teletech officials that Valencia town subsidizes the power bills of companies in their areas because they are near a power plant and have to consume a set amount of power.
She assured those who will invest in Davao City and other parts of Mindanao that government is winning the war against terrorists following the killing of Abu Sayyaf leaders Khadaffy Janjalani and Abu Solaiman. She said only 200 Abu Sayyaf members are left in Mindanao.
Trade Secretary Peter Favila said he will summon all the trade department's attaches to brief them on the government's economic strategies for 2007, the preparations for the resumption of the Doha talks, how to take advantage of the upcoming lifting of trade barriers, the benefits of the Association of Southeast Asian Nations (Asean) integration, and possible international markets that need to be opened up.
Favila also said the Philippines will try to get a portion of the US$500 million global infrastructure fund being drawn up by Credit Suisse, of which 80 percent would be poured into the Asia-Pacific region.
He said the funding that the Philippines would get from Credit Suisse would be channeled to the country's five super regions, particularly the agriculture super region in Mindanao which needs infrastructure for development. (JMR/Sunnex)
