Phl set to exceed this year’s growth targets

MANILA, Philippines – The government’s economic team is confident that the country could exceed growth targets this year with the economy seen expanding more than seven percent on the back of robust consumer spending and an improving global investment climate.

“Our goal is to sustain, if not surpass our growth performance. We are positive that we can take advantage of available opportunities such as improving global economic environment, particularly the sustained growth in emerging markets, improvement in demographic conditions, increased economic integration of the Asean member countries, and the availability of more financial resources,” Socioeconomic Planning Secretary Arsenio Balisacan said during the congressional hearing on the proposed 2014 national budget.

Balisacan said while the country’s economic managers are optimistic the Philippines could grow beyond the real GDP (gross domestic product) assumption of six to seven percent this year, they decided to maintain their official target given external risks.

“We opted to be more conservative as global uncertainties linger,” he said.

The Philippines posted the fastest annual growth in Southeast Asia during the first quarter, expanding 7.8 percent due to upbeat business sentiment and sustained government capital expenditure.

The growth was the highest so far under the Aquino Administration and also the third consecutive quarter of more than seven percent GDP growth.

“The manufacturing industry is expected to be more vibrant this year, buoyed by food manufacturing, and the recovery of the semiconductor and electronics industry as the world economy recovers between 2013 and 2014,” he said.

Balisacan said construction would continue to grow at a fast pace given the string of construction projects from both the government and the private sector.

“The continued inflow of remittances from overseas workers as well as the rising number of domestic and foreign tourists would also help boost the economy,” Balisacan said.

According to Balisacan, the Aquino Administration would continue to undertake agriculture programs and projects aimed at boosting productivity and farm incomes particularly those of small farmers.

Investments in road infrastructure, irrigation, research and development and security of land rights would likewise be made, he added. –Zinnia B. Dela Peña (The Philippine Star)