Arroyo: More ‘good news’ for Pinoys

Promises of “more good news" was assured by President Gloria Macapagal-Arroyo to the Filipinos Friday after the country secured rating upgrades and favorable outlooks from foreign and local investors following the full implementation of the reformed value-added tax (RVAT). In a round table discussion with Philippine Ambassador to the US Alberto Del Rosario and Loida Nicolas Lewis, chairwoman of the National Federation of Filipino-American Associations, the President pointed that this week alone, US-based Bear Stearns & Co, Inc gave a positive outlook for the Philippine economy while the California Public Employees Retirement System (CalPERS) upgraded the country’s ratings by four notches. “My countrymen, since we started to implement the reformed value-added tax (RVAT) last December, good news and statements from investors about the Philippines came in succession," Arroyo said. “And if we further strengthen our reforms and democracy against enemies and instability, there would be many that would follow CalPERS in choosing the Philippines to pour in capital and generate jobs to thousands of Filipinos," she said. She said strengthening the rule of law and the democratic institutions of the country also helped increase international and investor confidence in the Philippines. Bear and Stearns & Co in its latest report said the country this year would easily be able to meet its deficit targets and predicted that it would be able to achieve a five to six percent growth. It also noted that foreign investments as well as remittances from overseas Filipino workers continue to pick up. CalPERS, the largest pension fund in the US, raised its Philippine investment rating from 2.00 to 2.13, raising the country’s ranking among 26 other emerging markets, from 18 last year to 14 this year, and beating China, Malaysia, India and Russia. Arroyo credited Del Rosario and Lewis for working on the CalPERS upgrade where they erased investor misconceptions about the Philippines. The President said CalPERS nearly pulled out its investments in the country in 2002. Del Rosario said among the factors that led to the upgrade is the overall improvement in the economy owing to the unpopular fiscal reforms implemented by the President, including stable inflation despite high world oil prices, reduction of the deficit, and best performing stock market and peso. He said CalPERS also took note of the independence of the country’s judiciary and ongoing reforms in the banking system as well as the strengthening of the rule of law as evidenced by implementation of the Anti-Money Laundering Law and running after organized crimes. For his part, Press Secretary Ignacio Bunye said the optimistic forecasts of foreign and local analysts for the country’s economy proved that the full implementation of the RVAT would redound to the benefit of the people and proved critics wrong. He said the rosy predictions came only a few days after the government increased the RVAT rate from 10 % to 12 % amid street protests by leftist and opposition groups. “The Philippines is looking up and beyond the bleak picture and unrest painted by the prophets of gloom," Bunye said in a statement. “Domestic and global analysts are all predicting faster economic growth, a narrower government budget deficit, lower inflation, and lower interest rates." “The bullish outlook is a signal that the best is yet to come for our people, if only we can tone down the senseless political noise," he said. He said in the end, “it will be the people who will be the winners in the fight against poverty pushed forward by a strong economy." -GMANEWS.TV