MANILA, Philippines – The Aquino administration is aiming for a seven-percent economic expansion in the first half, banking on election spending to boost traditional sources of growth this year, officials said.

“We are optimistic the growth momentum will continue from the fourth quarter, which we predict will be a better one than the three previous quarters,” Budget Secretary Florencio Abad said in a text message.

“We can only speak for the first half of the year as our term ends June 30,” he added.

Arsenio Balisacan, director-general of the National Economic and Development Authority, said a seven-percent goal is “within reach.”

The government has set an official seven to eight percent target for 2015 and 2016.

Growth, as measured by gross domestic product, slowed down to 5.6 percent in the first three quarters of 2015 and the government already conceded on missing its target for the year.

For 2016, Balisacan said domestic consumption and investments would continue to push growth upwards, while exports are seen to “recover” and boost it further.

“Election-related spending will provide additional boost to the economy,” he said in a separate text message.

In particular, Abad said consumption would be supported by higher wages for the 1.2 million government employees as a result of the Salary Standardization Law. Both houses of Congress vowed to pass the measure this month.

Investments, on the other hand, will gain ground from the frontloading of the national budget ahead of the election season. Around 90 percent of the P1.663 trillion departmental budget were already released by Jan. 1.

The amount accounts for 55.4 percent of the P3.002-trillion outlay this year.

“(There is a) great sense of urgency to implement projects before the March 25 election ban,” Abad said.

“(There will be) further spending boost from the preparation for and the opening of classes in June, highlighted by the first year of implementation of the K-to-12 program,” he added.

On the supply side, Balisacan said the continued growth in the business process outsourcing industry, manufacturing and tourism could support expansion forward.

04 January 2016
By Prinz P. Magtulis