Phl seen to surpass 2010 growth target

MANILA, Philippines – The Philippines will likely surpass its 2010 economic growth target of five to six percent because of the strong gross domestic product performance in the first half of the year, Socioeconomic Planning Secretary Cayetano Paderanga Jr. said yesterday.

In a briefing, Paderanga said this year’s growth could hover anywhere from six to seven percent partly because of the pump-priming efforts of government in the early part of the year and election-related spending.

Paderanga said that fourth quarter growth may hit at least six percent because of the traditional Christmas spending. This, he said, would make it easier for the economy to grow by roughly 6.5 percent.

“To get to 6.5 percent (for the full year), you will need to grow by six percent in the fourth quarter. We expect fourth quarter growth to be at least six percent,” the socioeconomic planning chief said yesterday.

He also said the government is hopeful of achieving its growth goal of seven to eight percent next year but added it won’t be easy because the global economy is showing signs of moderation.

“It would be easier to hit the target for 2010 because of election spending and robust recovery and for 2012 because the impact of the reforms would be felt already,” Paderanga said.

He nonetheless said that the government would review its policies so that it can attract more investments and help ensure that next year’s growth target would be achieved.

The Philippine economy grew by 6.5 percent in the third quarter of the year, below market expectations and slower than the second and first quarter growths of 8.2 percent and 7.8 percent, respectively.

From January to September, economic growth averaged 7.5 percent or well above the full-year 2010 target of five to six percent set by the interagency Development Budget Coordination Committee (DBCC). –Iris C. Gonzales (The Philippine Star)