Economic rebound seen in second half of 2009

Updated July 15, 2009 12:00 AM

CEBU, Philippines - Some government agencies and business groups in Cebu believe that the country, especially Region 7, will recover from the effects of the global financial crisis in the second half of 2009.

During the 888 news forum yesterday, the Department of Trade and Industry, National Economic Development Agency, Department of Labor and Employment and its labor relations arm - the National Conciliation and Mediation Board, as well as the Cebu Chamber of Commerce and Industry and the Cebu Business Club shared the optimism that the country will perform better economically in the next six months.

While acknowledging the massive effects of the crisis, NEDA Regional Director Efren Carreon said there is hope for more jobs in the next six months, as the government already managed to provide 117,800 jobs through the Comprehensive Livelihood and Emergency Employment Services. CLEEP initially targeted 203,278 jobs.

Based on its economic situational report, Carreon said effects of the crisis started to escalate in the latter part of 2008 where most of the “regions’ economic drivers started to lose their growth momentum.”

The export industry suffered the major blow with a 16 percent downtrend compared to last year. The tourism industry is also being affected with domestic arrivals going down to 5.4 percent from last year’s 7.7 percent and foreign arrivals going down to 5.4 percent this year compared to the 12.3 percent growth rate in 2008.

Even information technology business process outsourcing felt the chilling effect of the crisis.

The NEDA also showed that some of the sectors had slower demands for their services and some investors have cancelled plans to set up facilities. Still, several companies made it through like Wipro Philippines and Convergys who reportedly remain positive of their future recovery.

Different government agencies like the Department of Public Work and Highways and the Department of Transportation and Communication already disbursed 36 percent and 12 percent of their frontloading infrastructure budget, which is aimed to make most of their projects in the first quarter of the year so that more could avail of jobs opportunities that come along with the projects.

Meanwhile, the Department of Agriculture and the Department of Education also disbursed 67 percent and 30 percent of their obliged frontloading project budget.

Dondi Joseph, president of the Cebu Business Club said they accept that there is a problem and the only thing to do is face it and find solutions.

Joseph said the Cebuanos’ unique way of handling business would also help since people in the region “know their way around problems like these and would know how to come out of it.”

For his part, CCCI Vice President Ted Locson said they are looking at the whole picture and how it will affect the country and Cebu, in particular, especially since Cebu has always “acted differently from the other provinces and proved to be rich in ways to ease away from business struggles.” – AJ A. de la Torre/JMO (THE FREEMAN)