The Philippine economy may have grown 6 percent in the first quarter, riding on consumer and government spending that offset poor export performance, a ranking International Monetary Fund (IMF) official said Wednesday.
“We think the momentum of this economy is around 6 percent, so we see growth around that figure even for the first quarter alone,” IMF Philippine Resident Representative Shanaka Jayanath Peiris told reporters.
Peiris pointed out that the 6.2 percent export revenue contraction to $12.08 billion in the first quarter would weigh on growth in the first three months.
He said, however, household consumption and government spending will give the economy the much needed boost.
Despite the slowdown in remittances from overseas Filipino workers in the first three months, money transfers likely remained a major contributor to household spending during the period, Peiris noted.
The Bangko Sentral ng Pilipinas earlier reported remittances reached $5.11 billion in the first quarter, up 5.6 percent year-on-year.
March remittances grew by 3 percent, the slowest since August 2009’s 2.8 percent.
“There’s nothing to worry about it, Peiris said. “There’s nothing wrong in gradual slowdown” Remittances coupled with increased government spending will help sustain the Philippine economy’s momentum, he added.
Peiris said IMF expects the economy to grow by 6 percent this year—or at the lower end of the Philippine government’s official target of 6 to 7 percent—unchanged from the multilateral lender’s earlier projection.
In March, Socioeconomic Planning Secretary Arsenio Balisacan said the Philippine economy could have grown between 6 to 7 percent in the first three months on the back of private and election spending.
GDP expanded by 6.4 percent in tehf rist quarter of 2012 and 6.8 percent in the fourth quarter, with the full-year out at 6.6 percent. — SOA/VS, GMA News
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