New investments boost GDP Growth Prospects in 2002
The Sunday Times- 2002-02-03

Foreign investments stemming from President Arroyo’s successful working visits to the United Kingdom, Canada and the United States could push economic performance to hit, or even surpass, this year’s 4.0 to 4.5- percent GDP growth forecast.

Following Malacañang’s announcement of a higher-than-expected 3.4- percent growth in its 2001 gross domestic product (GDP), officials said new pledges from the three countries would bolster economic performance this year.

The National Economic and Development Authority (NEDA), in a statement, said rising business confidence would boost GDP in 2002, under an atmosphere of continued macroeconomic stability.

NEDA said the anticipated reco-very of the US economy and strengthening of the Eurozone economies would help achieve its forecast for this year. As of the last quarter of 2001, the recession-hit US economy has expanded, defying expectations for a contraction as public and customer spending surged.


In Toronto, President Arroyo told Canadian businessmen that the 2001 GDP growth was “investment-led, with domestic capital formation rising 4.3 percent.” This was amid a global situation where many economies faltered.

The President said the economic growth could be carried over to 2002 because of “the government’s growing credibility in the eyes of foreign investors.”

In her latest trip, the President and her team of economists and businessmen bagged billions of pesos worth of pledged or signed-up investment. Mrs. Arroyo said she expects the new investments to create thousands of jobs, spur public and customer spending.

The President yesterday was in the second day of her working visit to New York where she attended the annual meeting of the Davos (Switzerland)- based World Economic Forum (WEF).


The investment agreements signed include:

• A memorandum of understanding (MOU) between the Clark Development Corp., Clark International Airport Corp. and US-based Garsol Management Innovators Inc. for aviation development in the Philippines. Investment costs included $157 million for aircraft and $45 million to build facilities for military and civilian flight training.

• A memorandum of agreement (MOA) between Megaworld Corp./Eastwood City Cyberpark and US firm Linksys Group to set up a $2-million global call center network.

• A MOA between the Department of Tourism, Canadian Association of Philippine Travel Agents Inc. and Philippine Tour Operators Association to enhance cooperation to promote Philippine tourism eastern Canada.

• A MOA between the National Housing Authority and the Canadian company Royal Ventures Construction and Development Inc. to develop and build 3,397 core housing units at the Royal Meadows Subdivision to the tune of P587.7 million.

• A MOA between Canada’s Beluga Tanks Inc., Panox Petroleum Products, and Philippine Stoneworks Specialists International Corp. to set up Beluga Asia in the Philippines to manufacture and distribute petroleum equipment and petrol station accessories.

• A MOA signed by the Chamber of International Trade, Inc. and the Canada-Philippines Business Council to promote information exchange, business networking and others.

• A MOA between the Philippine Chamber of Commerce of Toronto and the Chamber of International Trade Inc. to sharpen the entrepreneural skills of Filipino businessmen in the global economy.

• A joint venture agreement between Email Finitech Inc. and Vichem Coatings and Chemicals Inc. for investments worth $5 million in the custom application of non-corrosive, heat resistant porcelain enamel coating services on steel, iron cast and aluminum products for export.

• An implementation agreement with Canada’s SNC Lavalin to finance, design and build a light rail transit extension to the suburbs of Manila.