The Philippine Economy

[kalbongdad]

well nde pa nakakaupo....pinupuno na ang sarili ng mga problema na siya rin ang may kagagawan....

problema sa barong.....problema ang pag pili kung mga ribbon o wala

problema sa tirahan....para magpakita na hindi sya maluho gusto nya sa isang maliit na tirahan lang tumira...dali ng solusyon nya...sa iskwater siya tumira...

problema sa damit ng mga sister nya....di mag ukay ukay....

problema kay binay.....napahiya naman si mang timi dahil ang focus ni pnoy ay sa mga kastilaloy

[oreotm]

eh sya nmn gumagawa ng problema nya eh!! hahahaha

[amigo32]

wait lang kayo

[Retro]

OT muna tayo

I came across one news article that Kris A. happen to be avid believer of fengshui. So out of curiosity I search on wiki both P-Noy and Binay birthday and run their personal profile.

This is what came out...
For P-Noy (Year of the Rat)

Birthday: 2/8/1960

The general description about this person is enlightened, straightforward, optimistic, sophisticated, hasty, talkative, extreme, explosive, active, impatient and ambitious.

One word for people born in this month is ambitious.

These people are cautious, ambitions and self-protective. They have clear minds. They have overly cautious attitude; therefore, it takes them a very long time to make important decisions. Because they are afraid to lose anything, especially money and pride, it is easy for them to become upset. However, they will not worry or stay depressed for long because their easygoing manner protects them and recovers very soon. They are very self-motivated and independent in love and career. They are actively seeking opportunities and fulfillments in life. Once they set their eyes on something, they will never give up until they succeed. They tend to break off relationships with people whom interfere with their goals. They often turn life to their own best interests. Their loyalty change easily, if they find benefits elsewhere. Their influence is very strong over others. They are very persuasive and very convincing in public, as they always have the great desire to control the situation.

While for Binay (Year of Snake)

Birthday: 11/11/1941

The general description about this person is calm, cool, quiet, hardworking, intimate, self-assertive, insure, permissible, impractical, calculating, sensitive, nervous and patient.

One word for people born in this month is stubborn.

These people are often very stubborn. They are very determined and are willing to accept any challenges. They work very hard to carry a project through and are unwilling to give up. This type of people has a strong urge to complete tasks and hate to leave anything unfinished. Most of them are serious and have a strong sense of justice and responsibility. It always leads them to success. They are very cautious and think slowly before they act. Their overly honest and stubborn attitude tends to make them appear very impatient and inflexible. But generally, they are nice and kind. They will not express their discontent to other easily.

Disclaimer: Katuwaan lang po....
Sources:
http://en.wikipedia.org/wiki/Nonoy_Aquino
http://en.wikipedia.org/wiki/Jejomar_Binay
http://www.chineseastrologyonline.com/tlh.htm

[Retro]

DOF urges Aquino to introduce new revenue measures

By Marvin Sy and Paolo Romero (The Philippine Star)
Updated June 25, 2010 12:00 AM

MANILA, Philippines - The Department of Finance has urged the incoming Aquino administration to introduce new revenue measures within its first 18 months or while the people are still very receptive and understanding.

“I hope they won’t (miss out on the opportunity). Because there are valid reasons why we need to raise cigarette taxes and the excise tax on oil products,” Finance Undersecretary Gil Beltran told Palace reporters.

“They need to do it in the first one and a half years because after three years there would be elections and people would no longer be receptive. You have a limited window to do it and if you lose that, then that’s it,” he added.

Beltran noted that the Arroyo administration was able to get the revised value added tax law passed within a year after winning a fresh mandate.

The increase in the VAT from 10 to 12 percent has generated over P80 billion in new revenues in its first year of implementation.

For the next administration, Beltran noted that there are at least four new tax measures that the new Congress can work on immediately that could raise an estimated P67 billion in revenues.

Beltran explained that the excise tax reforms for tobacco, alcohol and petroleum products could generate as much as P40 billion; the rationalization of fiscal incentives, another P10 billion; the simplified net income taxation scheme (P5 billion); and the packaged increase in the VAT rate and lowering of the income tax, at least P12 billion.

President-elect Benigno Aquino III has repeatedly stated his preference for improving tax administration and going after smugglers over introducing new taxes.

Beltran said that an improved tax administration could enhance revenues but that it would take time.

He recalled that during the administration of Aquino’s mother, the late President Corazon Aquino, the additional revenues raised from improved tax administration were only equivalent to 0.6 percent of gross domestic product.

The figure was even lower at 0.5 percent of GDP during the Ramos administration.

Beltran argued that raising taxes is somewhat inevitable because of the multitude of tax breaks granted by Congress – P62 billion in 2009 and another P46 billion this year.

“That’s P108 billion. It’s too much. They granted too many tax breaks,” Beltran said.

But if Congress agrees to lift the tax breaks, then new revenue measures may no longer be needed, according to Beltran.

‘Proactive’ debt management

Beltran also said President Arroyo has undertaken a “proactive debt management” strategy that helped lighten the country’s obligations.

Beltran told a news briefing that the laws and administrative issuances that supported the capital market include Republic Act (RA) 9505 or Personal Equity and Retirement Account (PERA) Law, RA 9510 or the Credit Information System Act (CISA), enacted in October 2008, that established a comprehensive credit information sharing system; and RA 9576 of August 2009 that increased the Philippine Deposit Insurance Corp. insurance coverage from P250,000 to P500,000.

Major tax reforms that boosted tax revenues include RA 9334 or the Rationalization of the Excise Tax on Alcohol, Cigarettes and Tobacco Products, enacted in 2004; RA 9335, enacted in 2004 or the Lateral Attrition Law, which established a system of rewards and incentives for customs officials and employees; and RA 9337 or the Reformed Value Added Tax Law, enacted in 2005.

The government has also undertaken some administrative reforms, including the Run After Tax Evaders (RATE), Run After the Smugglers (RATS), and the Revenue Integrity Protection Service (RIPS).

Streamlining

The Department of Budget and Management for its part urged Aquino to continue the rationalization program for the bureacracy that has improved efficiency in operations and has generated savings of P2.32 billion since its implementation in 2007.

Budget Assistant Secretary Amelita Castillo said as of June 23, a total of 11,256 positions, of which 5,930 were funded posts, have been abolished since the streamlining of the bureaucracy began three years ago.

“There’s no specific policy yet if the new administration would still pursue the rationalization program. But we are hopeful that the new administration would continue implementing the rationalization program in view of the benefits that it is expected to attain,” Castillo told a news briefing at the Palace.

“It is not just about removing positions, it’s about improving the efficiency of government services because the rationalization program tries to focus the operations of agencies to their core mandates,” she said.

“So, in the process, we attain efficiencies and effectiveness in their operations. So let us remember that it’s not about removing positions, it’s about improving government efficiencies,” she maintained.

She said the abolished positions came from 76 agencies, including departments and government-owned and -controlled corporations.

The government has so far paid P1.2 billion in benefits and separation pay to the employees who have been retrenched but the loss has immediately been recovered with the savings from a streamlined bureaucracy, she said.

President Arroyo has earmarked a P10-billion separation package for government workers who will opt for the early retirement or for voluntary separation under the rationalization program.

Workers who have rendered 20 years of service and below who opt to retire will get half a month of their current salary for every year of service; three-fourth of a month’s salary for those employed from 21-30 years; and one month’s salary for those who have rendered 31 years or more.

For those who have only served for three years, they may avail of the separation gratuity which shall be not less than P50,000.

Under the plan, government agencies are required to submit their own rationalization plans to weed out redundant positions and avoid duplication of functions.

Budget Undersecretary Laura Pascua told the same news briefing that 94 more rationalization plans are still being evaluated by the DBM.

[x12y12]

wala na ba talaga tayong ma attract ng MNC to set-up factories to our country? no wonder our country is like a slug compare to our neighbrs. slowly but surely is not always good. we need to fast track infrastructure. Lets be vigilant. Lets tell those vermins and douchebags in our government to re-think their strategies. Bahhh sobrang pagong na tayo ah

[Retro]

Building the future

BIZLINKS By Rey Gamboa (The Philippine Star)
Updated June 25, 2010 12:00 AM

You know the Philippines is facing some serious problems when neighbors like Singapore and Hong Kong continue to excel in the world’s ranking of most competitive countries, while the Philippines has slipped to last place in Asia.

There is a host of reasons that could be blamed, and one is the huge infrastructure backlog that preempts cost-effective trade between regions and provinces, and exacerbated by the lack of government funds to address the challenge.

The Philippines continues to invest poorly in power, roads and water. Recent accounts have indicated the infrastructure investments are less than three percent of gross domestic product when ideally it should be at least five percent to be able to boost employment and have a dent on economic expansion.

An indication of this problem’s severity is when you see companies like the highly profitable San Miguel Corp., a monopoly in its sector, and reinvented Metro Pacific Investments Corp. eagerly seeking to put up power plants, build sea and airports and roads, and even operate toll systems.

San Miguel, for instance, thinks it makes sound business sense to sell its traditional core businesses in the food and packaging sector in order to invest in heavy industries, including mining, hoping to earn triple that of its discarded businesses.

Good thing that in the above cases, the enthusiasm of San Miguel and Metro Pacific in helping alleviate the country’s infrastructure shortage presents opportunity for the economy to expand even with the seemingly insurmountable fiscal and debt problems of government.

Last choice

But still, decades of underinvestment in infrastructure – largely because of government’s fiscal constraints since the late 80s – have led to a situation that has discouraged foreign inflows, leaving the Philippines as the investment choice of last resort.

This is frustrating for a country who was the first in the region to pass a build-operate-transfer law, legislated the most ambitious power sector reform law, and successfully passed on to the private sector one of the largest water concessions in the region.

Power generation and transmission miseries

This $164-billion economy in Southeast Asia plunged to a recession in the 1990s when massive electricity shortages that usually lasted as long as half a day sent factories and businesses to a halt.

This had prompted the government, with no funds at hand, to contract electricity supply to so-called independent power producers under a take-or-pay proviso, eventually leading to too much electricity capacity that led to higher prices.

Since then, businessmen and government have both been disinclined to build new power plants, turning a blind eye to the fact that the economy has continued to grow despite past regional and global financial crises.

In the era before the industry was deregulated, power prices had become too vulnerable on political expediency. Highly subsidized pricing had led to the accumulation of debt for state utility National Power Corp., a legacy that continues to hound our current high power price levels.

This year, at the height of the dry season, the power industry once again had to resort to rotating brownouts. This problem will be expected to worsen in two years time because no new power plants are being constructed or are being eyed for construction in the immediate future.

What would it take to build new ones? Market-determined power rates, true competition and a lot of incentives probably; but until all these becomes a reality, power infrastructure will surely be one major headache for this new administration.

Lest we forget, generation is just part of the power problem. Investments in the transmission sector are also needed to expand the high-voltage network, and the current transmission operator won’t likely do that if it won’t get a tariff to fund these requirements.

Costly and nerve-wracking road traffic congestion

Traffic congestion in the roads is another big problem. A World Bank study once monitored its cost in the Philippine capital. When ideally an efficient and adequate road network should be promoting growth, the lack of it costs the economy P100 billion a year based on 1996 prices, or around 4.6 percent of gross domestic product.

When we have infrastructure investment at less than 3 percent of GDP, the impact of road congestion on the economy further compounds the problem.

Lately, we’ve seen how aggressive San Miguel and Metro Pacific have been in offering to build and operate toll roads, most of which aim to decongest Metro Manila and at the same time connect the capital to provinces nearby in order to extend economic expansion to the countryside.

Metro Pacific for instance recently submitted an unsolicited proposal to connect the North and South Luzon expressways. At a cost of P17 billion, the connector-road will decongest the capital by providing an alternative to C-5 and EDSA.

Decades ago, private business taking on road projects in exchange for toll rates might seem excessive. But as a nation trying to keep up with its neighbors, we’re now seeing signs of motorists and even businesses ready to pay more, albeit reluctantly, in exchange for more efficient roadways.

Another P-Noy challenge

Infrastructure investments in the country, especially in the past decades, have been met with issues of corruption and inability to recover cost. Remember a power plant being returned by the winning bidder to the government or a water concession having the same fate?

With the government not in a position to finance the infrastructure we need, the most it can do is to commit to a credible regulatory framework that would balance the interests of investors and the public. Is the Aquino administration up to that challenge?

[Ady001]

Originally Posted by x12y12

wala na ba talaga tayong ma attract ng MNC to set-up factories to our country? no wonder our country is like a slug compare to our neighbrs. slowly but surely is not always good. we need to fast track infrastructure. Lets be vigilant. Lets tell those vermins and douchebags in our government to re-think their strategies. Bahhh sobrang pagong na tayo ah

Red Tape, Corruption, Dapat i-flush na 'tong mga malalaking Taeng, I mean taong to.

Oh wait, binoto sila ulit?

[amigo32]

Originally Posted by x12y12

wala na ba talaga tayong ma attract ng MNC to set-up factories to our country? no wonder our country is like a slug compare to our neighbrs. slowly but surely is not always good. we need to fast track infrastructure. Lets be vigilant. Lets tell those vermins and douchebags in our government to re-think their strategies. Bahhh sobrang pagong na tayo ah

1. mahal ang kuryente
2. mahal ang labor kumpara sa Vietnam, China, India, Indonesia...
3. Redtape, ang hirap mag negosyo, matagal daw ang proseso kumpara sa ibang bansa.
4. Ayaw nila ng matamis na spaghetti, balut at abu sayaf

[fengrun]

tanong ko lang bakit ang malaysia maraming manufacturing ng electronics pero mahal ang labor sa kanila?

[amigo32]

Originally Posted by fengrun

tanong ko lang bakit ang malaysia maraming manufacturing ng electronics pero mahal ang labor sa kanila?

parang Singapore din yan, nauna silang nagkaroon/establish ng mga planta, sabayan ng magandang infra, murang kuyente, walang checheburecheng gobyerno, offset yung labor cost, at marami pang dahilan kaya tumagal sila doon, pero unti unti na rin umaalis, makikita mo mga planta nila hindi na ganun kalaki mag expand, kasi dinadala na lang sa China at Vietnam ang ibang gawa.

pagliit ng kita nila doon, hindi na ganun kahirap maglipat ng planta kasi meron na sila sa China at Vietnam.

[xxxriainxxx]

Originally Posted by amigo32

parang Singapore din yan, nauna silang nagkaroon/establish ng mga planta, sabayan ng magandang infra, murang kuyente, walang checheburecheng gobyerno, offset yung labor cost, at marami pang dahilan kaya tumagal sila doon, pero unti unti na rin umaalis, makikita mo mga planta nila hindi na ganun kalaki mag expand, kasi dinadala na lang sa China at Vietnam ang ibang gawa.

pagliit ng kita nila doon, hindi na ganun kahirap maglipat ng planta kasi meron na sila sa China at Vietnam.

at dahil marami ding silang reklamo sa Tsina at VN- maghahanap ulit ng iba yan.

Why?

1. Kulang kulang ang electricity dito sa bansa na tinitirhan ko. Today, dalawang beses na nagbrown out.

2. Kulang sila sa skilled labor. You get what you pay for.

3. They realize na mas malala pang kumurakot ang mga taga dito kesa sa Pinas.

Very substandard talaga lahat ng bagay dito.

[fengrun]

Originally Posted by xxxriainxxx

at dahil marami ding silang reklamo sa Tsina at VN- maghahanap ulit ng iba yan.

Why?

1. Kulang kulang ang electricity dito sa bansa na tinitirhan ko. Today, dalawang beses na nagbrown out.

2. Kulang sila sa skilled labor. You get what you pay for.

3. They realize na mas malala pang kumurakot ang mga taga dito kesa sa Pinas.

Very substandard talaga lahat ng bagay dito.

kung kulang sila sa skilled labor, ano ang pinagkaka buhayan ng mga tao dyan?

pansin ko nga mas magaling sila mag negosyo at talagang matipid sila.


-

kita mo nga naman ano, tapos pag sa pinas nagkaron lang ng isang beses na brownout sa loob ng mahabang panahon, ang mga pinoy sa ibang bansa lalaitin na naman ang pinas. Na subukan ko yan. Nilait ang pinas at buti pa daw sa kinalalagyan nya sa tate.

[kalbongdad]

hayaan nyo na ang mga yan....mga ALTERED NATIVES mga yan... defense mechanism nila yun....para nde mahalata ang kahirapan na dinaranas nila sa ibang bansa bilang mga 2nd class citizens...

[mreducator]

haha off-topic, basta ako naman on my part, I'm happy living as a first class citizen in my own country

[Sleepwalker]

Originally Posted by amigo32

1. mahal ang kuryente
2. mahal ang labor kumpara sa Vietnam, China, India, Indonesia...
3. Redtape, ang hirap mag negosyo, matagal daw ang proseso kumpara sa ibang bansa.
4. Ayaw nila ng matamis na spaghetti, balut at abu sayaf

Hmmm, kung mag-explode na ang Chinese yuan, baka may magaganap na migration nang mga FDI's.

Idagdag pa natin na medyo pataas na ang sahod nang mga laborer nila at pataas na din ang presyo nang mga bilihin nila.

Tayo naman, may maipagmayabang naman tayong mga skills set at sense of quality, may chance pa tayong makakuha nang ilang porsyento sa mga FDI na ito, kung mangyari man ang migration.

May narinig na nga akong isa o dalawang mga manufacturing company na nag-transfer na sa Clark, dahil OK na daw ang logistics, dahil sa bagong mga expressways.

Kaya, more power generation at infras...

[fengrun]

this is what I have been saying before. Once china goes up, it will also benefit the Philippines. China must go up to upper middle income economy first, and then the Philippines. That's the reason why the Philippines is part of the Next 11.

http://www.philstar.com/Article.aspx...bCategoryId=63

[kenken94]

RP marketers cited for ‘healthiest growth’ in Asia
Top News
Written by Marjorie Teresa R. Perez / Marketing Columnist
Thursday, 24 June 2010 22:21

ASIAN Marketing Federation (AMF) and Japan Marketing Corp. (JMA) president Takuya Goto on Thursday hailed Philippine marketers as the “growth accelerator” for pursuing corporate growth, sustainable development and advanced relevant advocacy. He noted that, “it was the Philippines that recorded the healthiest development” in contrast to other developed countries like the United States, Japan and Europe, which are still searching for a way out from the global economic slump.

Goto paid his tribute to local marketers in an address before the Philippine Marketing Association’s (PMA) 41st National Marketing Conference (NMC) in Pasay City, with the theme “Marketing in Hyperspeed.” The conference presents 14 thought leaders in one conference to share knowledge, innovative and creative ideas, as well as adapt and respond to the fast changes and demands of the industry. A live feed from fellow marketers in Davao City was simultaneously shown.

Goto said, “I, as the AMF president, am honored to work together with you and our friends in Asia, for the benefit of Asian marketers. AMF is very proud to be affiliated with PMA; PMA is one of the most important members since our foundation in 1991. We always value PMA’s many contributions to the promotion of marketing excellence, not only in the Philippines, but also the entire Asian region.”

In his keynote address, Dr. Cecilio K. Pedro, CEO of Lamoiyan Corp. and the country’s representative to the AMF, branded marketing people as the home of the wonderland. “Marketing is the future. I am with the future,” he said. Taking marketing to a higher level, he encouraged marketers to become entrepreneurs and be at the forefront of making products affordable to the mass market. More important, he said, the new wave of marketing has provided new perspectives on its role, from pitching products to handling customers to nurturing the human spirit, which he calls the core values of his corporation.

Other noted speakers included Ateneo de Manila University professorial lecturer RJ Esteban, also managing director of the Philippine Survey Research Centre (PRC). He spoke on “Laying Bare the Consumer Mindset—Loyalty or Infidelity” and different approaches for deconstructing consumers’ motivations and aspirations.

Thomas Fernandez, author of two best-selling marketing books, Niche Dominators and Secrets to Dominate Your Niche, shared success secrets of top entrepreneurs and how their companies became niche dominators. He, however, said marketers must know the highly practical and actionable marketing strategies they can immediately apply to “outwit, outperform your competition and generate bottom line.”

Sail into success

Certified international facilitator-consultant and noted people/management training specialist Ricardo de Vera introduced the Green Ocean Business/Marketing Strategy, which becomes crucial as the success rate for companies of all sizes becomes more challenging and stressful to reach, especially with the speed of change in the markets and business environment. He quoted from recognized strategic guru Alvin Toffler in predicting the Philippine business scenario will be terra incognita—a future of uncertainty and unpredictability—because of the highly erratic market behavior.

An exciting business marketing strategy is making waves these days, and seen to perfectly address competition in Asian markets, the Green Ocean Business/Marketing Strategy is a welcome discipline and transformational mindset. It is not about “greening the environment,” as many would mistake it to be, but rather a thought-provoking business-management discipline that provides hidden solutions to what many businesses have been searching for in changing times.

Beyond marketing, this practical, understandable and easy-to-implement approach complements two other marketing strategies: the Red Ocean (where market players with similar targets compete tightly to the point of making lowest prices the name of the game) and Blue Ocean (where organizations search for new markets and explore unexplored market space, inviting great risks for investments). The strategic balance is sought in a way that businesses, SMEs, or even entrepreneurs are not too bunched up near their competitors, yet they don’t explore uncharted areas, which could mean greater risks and investments.

Elusive generation

Tapping the elusive generation of the Y market to expand and grow, marketers seek to understand the complexities of this new emerging-market bloc and how marketers can effectively promote their products and services.

According to Joselito B. Ortega, CEO of JWT Manila, these young people belong to the so-called Generation Y whose day and night chores are linked to the Internet. Based on a research by USA Today, they are the “first generation to grow up online and the most ethically diverse generation ever.”

Young and driven folks became an increasing bloc and an important fragment in the market, although, they are not easy to handle. These are considered the generation who “does not read, does not watch TV,” but is constantly at the computer.

In Photo: Lamoiyan Corp. CEO Dr. Cecilio Pedro keynotes the opening of the 41st National Marketing Conference 2010 of the Philippine Marketing Association.

(By Nonie Reyes)

[kenken94]

Construction sector now valued at P150B
Top News
Written by Manuel T. Cayon / Reporter
Thursday, 24 June 2010 22:19

DAVAO CITY—Once the most battered sector during the 1997 Asian financial crisis, the country’s construction sector is now valued at P150 billion and growing annually at a rate of between 6 and 7 percent, the Philippine Constructors Association (PCA) said here on Thursday.

“The developers and constructors have learned their bitter lesson well from that bubble burst,” said Manolito Madrasto, executive director of the PCA.

“The growth of the sector is not driven anymore by the public sector, but by the private sector.”

“There are constructions of malls, commercial establishments, and there are more tourists facilities,” he added, noting the best year of its growth in the decade was in 2008 with a 19-percent gain “at a time when we were down [due to the global recession].”

Madrasto said the growth of the sector was one of three industries that largely helped “in fanning out economic gains for the economy—the business-process outsourcing, which we thought would collapse but more than survived—and mining and construction . . . .We are expecting 6-percent to 7-percent growth this year.”  

He said “a lot of factors were going well to support the upbeat trend in the sector. Our banks, which also learned from that crisis, are now cautious in just giving loans away as well, and they are now awash with money and the real estate and construction sectors are getting the loans from them.”

Another source of  liquidity in the banking sector “is the huge number of overseas Filipino workers and we are seeing a shift in their spending pattern. We are seeing more professionals getting out, and the money that they send back home are therefore of much higher amounts.”  

He said the spending pattern shift was from consumer items to investing in homes or saving them in deposit accounts. “That’s why we are seeing the banking system awash with money. Or that also explained the steady increase in housing construction activities and that’s why we also see an upsurge of entrepreneurs.”  

Larry Espiritu, president of PCA, said the adoption of the so-called private-public partnership (PPP) concept in the implementation of construction and other development projects helped plugged public leakages associated with the government. Under this concept, the government would only need to identify the projects and hand these to the private sector for implementation, and the private sector to turn over the finished project to the government for public use.

“The government would also send a monitoring officer to check on the progress of the project but full accountability would now be with the private sector over the project. This way, there would also be increased transparency of the implementation of the project,” he added. “The private implementation also frees the government of suspicion.”

“Our Asian neighbors have already been using this kind of partnership, and you would not believe this but the PPP is a practice original to the Philippines,” said Madrasto. “It was first applied in the 1960s and during the time of the construction of the first Mactan Bridge in Cebu City. We abandoned it later.”  

“The government resurrected it when the administration [of President Arroyo] granted us the Tarlac-Pampanga-La Union road project last year, and we are now currently in the construction stage,” he said. “This project would cut travel time from Manila to Baguio by three hours.”

Madrasto said this  practice would be one of the items the PCA would lobby with incoming President Benigno Aquino III for his administration to continue.

[wino]

FMIC expects a 5.5% GDP growth
By EDU H. LOPEZ
June 27, 2010, 10:49am
First Metro Investment Corporation (FMIC), the investment banking arm of the Metrobank Group, is projecting a 5.5 percent growth of the country’s gross domestic product for 2010 with a bullish sentiment in the second half of the year.

FMIC expects the GDP growth would be backed by strong economic fundamentals, a fresh and promising political landscape after the success of the first automated elections.

Senior executives of FMIC said that the growth drivers are infrastructure and consumer spending supported by strong OFW remittances.

The market would likely have a strong bias towards stable and lower interest rate levels due to continuing liquidity, accommodative policy stance of the Bangko Sentral ng Pilipinas and still benign inflation environment.

FMIC still maintains its view that the deficit will be contained at P300 billion. At such a level, deficit to GDP is ensured at 3 percent.

There would be a revival of corporate issuances but not in the initial public offering (IPO) market.

However, the aggregate volume of P263 billion in 2009 is not likely to be duplicated in 2010, said FMIC.