Election campaign spending is expected to boost the economy although at a slower rate due to mobility restrictions during the pandemic, according to Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno.
Diokno projects a 0.50% “bump” to gross domestic product (GDP) due to increased spending for the May 2022 presidential elections. Previous elections contributed one percent to total GDP.
“There will still be a bump but not as big as the previous elections. In 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 before because of mobility restrictions. “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,” he said.
Economic managers expect GDP to expand between seven and nine percent in 2022 and six to seven percent for 2023 and 2024.