Philippines to grow 4.2% this year: HSBC

MANILA, Philippines - Prospects are bright for the Philippines this year as its economy is expected to expand by 4.2%, and its currency seen to hit P43.5 to the dollar by year-end.

Frederic Neumann, HSBC senior economist, said the country's economic growth for 2010 will be supported by stronger remittances and higher government spending.

"Looking ahead, the Philippines will see a sharp rebound in growth," Neumann told reporters.

Despite the rosy outlook, however, Neumann warned that the country's inflation rate may rise to 5.1% this year from last year's 3.2%.

Given this, he called on the central bank to begin tightening monetary policy.

The Philippine economy was expected to expand by a meager 1.1% in 2009. For the first 3 quarters last year, the country posted a 0.7% growth in gross domestic product (GDP).

GDP figures for the last quarter and the whole of 2009 are set to be released on January 28.

Arroyo govt shopping for jet worth P1.2B

The Arroyo administration is shopping around for a used “presidential fixed-wing executive jet" worth at least P1.2 billion.

The prospective aircraft must be “factory new, twin-engine (turbo-fan engines), pressurized, fitted with auxiliary power unit, and with VIP cabin configuration," said an advertisement placed in the Philippine Star on Thursday.

“The type of aircraft to be offered should have been used as a VIP/Executive aircraft by the country of origin and by at least two countries," the advertisement continued.

As of this posting, Malacanang has not responded to requests for comment about the ad. But despite whatever justification it will make, news of the planned purchase will likely fuel the public outcry over official extravagance.

The President and her US entourage are being criticized for spending $20,000 and $15,000 respectively for expensive dinners in New York and Washington, DC. The uproar has come in the wake of the national mourning for the late former president Cory Aquino, who was known for her simplicity of lifestyle and personal modesty.

The newspaper ad for the new presidential jet invited interested bidders and suppliers to participate as long as they have a repair shop within the Southeast Asian region with the necessary tools, equipment, and skilled personnel.

These “should be ready and available before the delivery of the aircraft," the ad said.

Funds for the jet’s acquisition are expected to come from the Philippines’ 2009 national budget.

Interested bidders are required to pay a non-refundable fee of P100,000 until August 26, 2009.

The pre-bid conference is scheduled for the next day at the Mabini Hall in Malacañang while the bid submission deadline will be on September 10, 2009. The winning bidder will be chosen on the same day.

Under the Arroyo administration, the government acquired at least two brand-new choppers, one of which crashed in Ifugao province last April, killing Palace personnel, including Press Undersecretary Jose Capadocia.