Contrary to the bleak future painted by the opposition regarding the Philippine economy, analysts are upbeat on the country's economic growth, Malacañang Press Secretary Ignacio Bunye said yesterday.

Bunye said the bullish outlook is a signal that the best is yet to come for the Filipinos, his press release said.

Domestic and global analysts are all predicting faster economic growth, a narrower government budget deficit, lower inflation and lower interest rates, he said.

Bunye was reacting to reports that the imposition of the Reformed Value Added Tax will cause more hardships for the Filipinos.

He cited a statement of the Philippine Chamber of Commerce and Industry that the two percent rise in the VAT will produce long term benefits for the economy even if consumers are affected in the short term because of higher prices, the press release said.

The PCCI said that the rise in the VAT rate from 10 to 12 percent will send a strong signal to foreign investors, credit rating agencies and trading partners that the country is serious about improving its economy.

Also, the latest ranking of permissible investment sites released by the California Public Employes Retirement System, the biggest pension fund in the United States, the Philippines came ahead of China, the press release added.

The Philippines scored of 2.13, up from last year's 2.00, to move up to 14th place from 18th, ahead of Malaysia, China, Russia and India, it also said.*

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