The country’s economy continues to improve because the spending commitments of the government in the first quarter help the recovery, Presidential Economic spokesman Gary Olivar said.
“That’s one. Number two, the continuing global recovery, although it’s slow, has an effect,” Olivar said.
What is important, he said, is that the country can look forward to a positive economic growth by year-end in spite of the typhoons that hit most of Luzon.

Asked if the fourth quarter will be better, Olivar said it will be “because it’s spending season and we expect an uptick in seasonal sales, and it’s also the start of the campaign season, which is good for the economy.”

However, he added, “I don’t know if we can talk about wholesale purchasing in order to stock up inventory for the Christmas shopping.”

Olivar said he’s assuming that the wholesale level will help stimulate the economy, but whether it is achievable is another matter.

Still, it is unlikely that the Philippines will post zero or negative growth before President Gloria Arroyo steps down in June given the present economic conditions, he said.

“The global recovery is firming, and there are signs. In terms of demand picking up and exports, that’s good news for us and we believe it will continue,” Olivar said.

Angelo S. Samonte