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By Chino S. Leyco, Reporter
PHILIPPINE economic managers expect growth to
pick up pace anew in the next two years after this year’s slowdown
on account of higher commodity prices.
The Development and Budget Coordinating
Committee (DBCC) set the country’s gross domestic product (GDP)
growth range next year to between 6.1 percent and 7 percent, better
than this year’s 5.7 percent to 6.6 percent target.
At the end of President Gloria Arroyo’s term
in 2010, the economy should grow 6.4 percent to 7.2 percent, which
is a wider band than the earlier goal of 6.8 percent to 7.2 percent.
The inter-agency body that sets the country’s
macroeconomic goals already realigned its GDP target for this year
from an earlier range of 5.7 percent to 6.5 percent on slowing
growth around the world and rising prices.
GDP refers to the total value of goods and
services produced in a country in a year. In the first quarter this
year, GDP grew 5.2 percent.
Inflation is expected to average from 4 percent
to 6 percent next year, and 2.5 percent to 4.5 percent in the
following year. This projection arises from a forecast for Dubai
crude, the country’s benchmark for oil, at between $115 and $125 a
barrel until 2010.
The DBCC also expects the exchange rate to range
from P42 to P45 against the US dollar in the next two years.
The inter-agency body sees government
expenditures this year to reach P1.334 trillion. Of the total,
P1.056 trillion will go to current operation expenses and the
remaining P267 billion for capital outlays.
Personal services are projected to reach P396
billion; maintenance, P179 billion; subsidies, P10.7 billion;
allotment for local government units (LGUs), P170 billion; interest
payments, P286 billion; and tax expenditure subsidies, P12.2
billion.
For capital outlays, infrastructure expenses
would amount to P212 million; equity, P2.1 billion; capital transfer
to LGUs, P48 billion; and land acquisition under the Comprehensive
Agrarian Reform Program, P4 billion.
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