MikeLigalig.com

By EVANGELINE NAVARRO
Manila Bulletin

MANILA, Philippines — Cataclysmic typhoons. Crashing markets. Slowing economies. Droughts and nil harvests. Pockets of violence riddling the world. You’d think with the cumulative erosion of bad news on our psyche, we’d be reduced to cowering paralysis or depression. Or both. Instead, local news is doing shimmery prose on the brighter economic prospects ahead.

The Asian Development Bank projects the Philippine economy to grow by 4.8 percent in 2012 compared to the estimated 2011 rate of less than four percent last year due to expected government spending in infrastructure and a sustained, if not better, level of remittances that will support local consumption.

Local bank deposits rose to R5 trillion in the third quarter of 2011—with more than half of these plunked down by individuals—and this is expected to boost lending activities and, subsequently, fuel efforts in bumping consumption and investments. Industry players are in consensus that banks will see more lending this year with BPI forecasting a double-digit expansion of its credit business for the first quarter of the year. If there is any credit squeeze coming from dour global economic prospects, it’s not happening in this neighborhood.

The Clark free port reports an export performance last year that is already ahead by three years in terms of target. The country’s sugar industry expects bumper yield from Luzon and Mindanao brought on by warm weather. In other sectors, despite efforts by American policymakers to discourage the flight of work to other countries, the BPO industry is expected to grow up to as much 20 percent this year, representing a 4.8 percent share of GDP. In 2016, the industry is expected to be at par with the level of OFW remittances and is expected to corner 10 percent of the world BPO market.

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