Official : Domestic spending to boost Philippine economy

The Philippine government is banking on domestic spending in improving the economy for 2012 in the wake of the continued economic woes in Europe and the United States, a senior official said on Monday. Presidential Spokesperson Edwin Lacierda said that the government has anticipated the difficulties brought about by the external conditions of the global economy. "Hence the reason why we are emphasizing domestic spending and further improving the economy from within," he said in a regular news briefing. Lacierda said this was also the reason why the government has earmarked huge budget that would directly impact on the poor. Of the 2012 budget, the social services sector, such as education, health care and housing, takes the lion's share with 31. 3 percent or 568.6 billion pesos (12.95 billion U.S. dollars). Lacierda said that with the infrastructure spending also, "we hope to improve the economy and consumption from within." He expressed hope that the global economy will soon recover. The government is targeting 5-6 percent gross domestic product growth for this year.