By IRMA ISIP

It’s now the government’s turn to spend as confidence skids in the wake of the global financial crisis.

Edgardo Lacson, president of the Philippine Chamber of Commerce and Industry (PCCI), said government should continue to pump prime the economy to encourage private sector investments.

"Government should pump prime the economy to show to the private sector that government is improving our economy. They will follow and be encouraged," he said.

He added that infrastructure spending should not stop even as the domestic growth is expected to slow down.

Lacson said business is still hopeful as investments continue to come in, even from newcomers, in the areas of shipping, airline and tourism.

"Even if growth slows down in other (sectors) like electronics, this is not going to affect overall economy. There is nothing to be worried because we have sound economic fundamentals," Lacson said.

Planning Secretary Ralph Recto said last week the government is looking at a 4.4 to 4.9 percent growth rate this year and a 4.1 to 5.1 percent growth in 2009.

Lacson said these targets are more realistic.

"The 7 percent growth is already a thing of the past. We have downgraded (growth forecasts) which are more realistic. (There is) still growth no matter how modest," Lacson said.

Recto has said that government still has room for increased public spending especially for infrastructure this year and next year after reaching P32 billion budget deficit as of August from a target of P75 billion for the whole of 2008.