NEDA sees 6% growth

MANILA, Philippines – The Philippine economy could grow by almost six percent this year, thanks to improving business optimism despite a series of destructive storms in recent months, a top official of the National Economic and Development Authority (NEDA) said yesterday.

During the Philippine Economic Briefing at the Philippine International Convention Center in Pasay City, socioeconomic planning secretary and NEDA director-general Arsenio Balisacan said the government is optimistic it would hit the high end of its targeted gross domestic product (GDP) for the country.

“The Philippine GDP is expected to grow by five to six percent this year, most likely in the upper range of the target, with the healthy macroeconomic fundamentals and higher business optimism,” Balisacan said.

He said specific drivers of sustained economic growth would be business process outsourcing (BPO), trade and tourism.

Tourism Secretary Ramon Jimenez Jr. cited the 11.68 percent rise in tourist arrivals to 2.2 million in the first half of the year, while Bangko Sentral ng Pilipinas governor Amando Tetangco reported a 5.3 percent rise in remittances from the millions of Filipinos working overseas to $13.3 billion in the first seven months of 2012.

Aside from the services sector, the agriculture and manufacturing sectors are also expected to support economic expansion.

The agriculture sector grew by 0.93 percent in the first six months of this year. It accounts for 11 percent of the economy behind the 57-percent share of the services sector and the 32 percent of the industry sector.

For the second quarter of the year, the manufacturing sector also showed a growth of four percent.

Balisacan said there is no need to revise GDP targets given the strong economic figures for the past months.

GDP, which measures the value of goods and services within the country, reached 6.1 percent for the first half of the year, exceeding the government’s projected five to six percent target for 2012.

Balisacan pointed out that the growth projections for GDP could still be sustained as the economy shows resilience amidst global problems such as the crisis in Europe.

Balisacan added that the impact of the damage brought about by weather disturbances last month and early September would not make a dent on the economy.

The heavy rains and storms left huge parts of Metro Manila flooded, killing scores and displacing millions. –Donnabelle Gatdula (The Philippine Star)