By Elaine Ramos Alanguilan

Trade Secretary Peter Favila has ordered all agencies attached with the Trade Department to refocus efforts this year on generating livelihood projects in a bid to boost the domestic economy amid the global crisis.

Favila said he was also considering realigning over 10 percent of the agency’s annual budget allocation of around P3 billion to support initiatives that would provide jobs to persons displaced by factory closures and reduced operations because of the crisis.

He said the livelihood projects would enable Filipinos to survive until the economy got better.

“I expect the underground economy to sustain modest economic growth during this crisis as it did during the 1997 Asian financial crisis. I want the regional operations group, all other attached agencies to come up with feasible livelihood plans to help those who may be displaced by the crisis,” said Favila.

He said he expects exports and investments to remain flat at best this year.

“I don’t see the kind of numbers that we used to enjoy in the past years. In the United States, there is hardly any consumption spending. Europe is also having problems. For exports, we’re looking at within Asean and Japan because of our treaty with them,” said Favila.

The government earlier projected gross domestic product to grow by 3 percent to 4 percent this year and investments to increase by at least 12 percent every year until 2012.

The export sector reported a 40-percent decline in demand in the last quarter of 2008.

Favila said the economic targets needed to be reviewed periodically as they might fall short.

“The 3 to 4 percent GDP growth is our fighting target. At this time, anything is possible,” said Favila.

The Philippines is looking at other markets like the Middle East as source of new investments and development assistance and an export market.

“Investments would continue to come in but not as fast as they used to. We are now looking at services, particularly tourism and the business process outsourcing sectors to buck the downtrend,” said Favila.

He said the budget for foreign trips for trade and investment missions would have to be re-channeled to livelihood projects.