Poll spending to bump up GDP growth by 0.5% – BSP

MANILA, Philippines — Election campaign spending by political parties and candidates for next year’s polls is expected to give the economy a lift, although at a slower rate compared to previous elections due to mobility restrictions amid the pandemic, according to Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno.

Diokno told participants in the European-Philippine Business Summit that the “bump” to gross domestic product (GDP) from spending for the May 2022 general elections is seen at 0.50 percent.

Previous elections have contributed one percent to total GDP.

“There will still be a bump but not as big as the previous elections. I think in the previous elections, we saw at least a one percent bump in the GDP, (now) maybe half a percentage,” Diokno said.

Diokno pointed out that next year’s elections would not be as expensive as the previous ones because of mobility restrictions as the country continues to struggle to contain the pandemic.

“I don’t think this election would be as expensive as previous elections. I can say that because there will be no open campaigning. It will be through the social media and as you know, to me, that’s less expensive than the physical campaigning of politicians,” the BSP chief said.

Economic managers, through the Development Budget Coordination Committee, expect GDP to expand between seven and nine percent in 2022 and six to seven percent for 2023 and 2024.