Citi sees Philippine growth at 5.3 percent

MULTINATIONAL financial services firm Citi sees the Philippines’ gross domestic product (GDP) growing by 5 percent to 5.3 percent, which is as at the low end of the government’s target, this year.

In a media briefing on Tuesday, Citi Chief Economist for Asia-Pacific Johanna Chua said that the GDP of the country would likely expand by 5 percent to 5.3 percent.

The government set full-year GDP growth at 5 percent to 6 percent, but the National Economic and Development Authority on Monday said it was aiming for an expansion of at least 6 percent.

Earlier, Standard and Poor’s raised its growth outlook for the Philippines even as it cut or retained its forecast for other Asian economies.

The international credit rating firm hiked its forecast for the Philippines to 4.9 percent from its earlier estimate of 4.3 percent.

The Philippines’ GDP growth settled at 6.1 percent in the first half of the year on the strength of remittance-led consumer spending and the services sector, which includes the sunrise business processing outsource industry.

Second quarter growth was at a respectable 5.9 percent, beating market expectations and placing the country’s economy at the upper end of government’s full year forecast.

This brought the first semester growth to 6.1 percent, well beyond the 4.7 percent average GDP growth of the country in the last decade.

By type of expenditure, household and government consumption continued to expand by 5.7 percent and 5.9 percent, respectively.

Public construction pushed growth in total construction to 9.2 percent. Exports of goods grew by 7.9 percent, while exports of services grew by 9.9 percent, driving total exports to grow by 8.3 percent. –RAFFY S. AYENG REPORTER, Manila Times