Business leader sees 2% GDP growth this year

MANILA, Philippines – A businessman expects the country’s gross domestic product (GDP) to grow over two percent this year despite the measly 0.4-percent economic growth in the first quarter.

“The second quarter is a leveling quarter but hopefully, these third and fourth quarters will have some growths,” said Donald Dee, Philippine Chamber of Commerce and Industry (PCCI) chairman emeritus and vice chairman of the Philippine Exporters Confederation, Inc.

Dee said once the economy starts growing this second semester, recovery will continue until next year. He said the United States economy is nearing bottom and is showing signs of recovery.

“The US is looking at a very good 2010 and it will take about six months for us to feel it,” he noted. “Just like when they entered into a recession in the second semester of 2007, we were hit already last quarter of 2008 and first quarter of 2009.”    

Dee said the global crisis hit Philippine exports hard especially electronic products, coupled with the very low growth of the agriculture sector.

The country’s GDP only grew 0.4 percent in the first quarter this year as the industry posted its lowest growth for the last 20 years to 6.6 percent from 0.1 percent in the previous quarter. The significant weakening of the manufacturing sector contributed mainly to the industry’s lower growth.     

Dee’s economic projection jibed with that of economist Bernardo Villegas who expects the GDP to grow to 2.5 to four percent in 2009.

Villegas said this year’s growth drivers are overseas Filipino workers’ remittances, government infrastructure spending, agriculture, domestic tourism and expenditures of political candidates who will be running for the May 2010 elections.

He said economic growth will accelerate to a high of six percent in the fourth quarter, from three percent in the second quarter and then four to five percent in the third quarter. – Philexport News and Features