PRESIDENT Arroyo yesterday said the local economy is faring better than other economies in meeting global recession.

At the inauguration of the Busuanga Airport in Coron, Palawan, Arroyo said "in a very stormy sea of global economic uncertainty, the Philippine economy is a relative island of calm" as she reiterated her call for unity and the setting aside of personal and political differences.

Arroyo promised to construct more roads and other infrastructure in Palawan to make its sites more accessible to tourists. She said tourism must be a national priority because of its effects in terms of social development such as job generation.

She said Boracay, Cebu, Bohol and Palawan – the four provinces that draw more than half of tourists – are being given priority in terms of investments. She said the construction of airports in Palawan will serve as the backbone of its tourism industry.

Trade Secretary Peter Favila said the trade department’s monitoring showed a reduction in the prices of basic items due to the cooperation of traders and retailers. 

Favila said the prices of "noche buena" products are being monitored and no spikes have been observed.

He said the trade department is monitoring about 45 wet markets in Metro Manila.

John Forbes, chairman of the legislative committee of the American Chambers, said American businesses do not expect the Philippines to go into a recession next year because of "basic support" particularly the remittances of overseas Filipino workers.