MANILA - (UPDATE 7, 4:57 p.m.) The Philippine economy grew 7.8
percent in the first quarter of the year, making it the fastest-growing
in East and Southeast Asia, the government said today.
Economic expansion in the first three months was way above the National Economic and Development Authority's (NEDA) forecast
of 6-7 percent, which is also the full-year growth target range, and
brisker than the 6.8 percent in the fourth quarter of last year.
During a press briefing at the National Statistical Coordination
Board (NSCB) office in Makati City, NEDA Director-General and
Socioeconomic Planning Secretary Arsenio Balisacan said the country's
first-quarter growth was faster than China's 7.7 percent, Indonesia's
six percent, Thailand's 5.3 percent and Vietnam's 4.9 percent.
Driving Philippine gross domestic product (GDP) growth in the first
quarter were construction and manufacturing, which rose 32.5 percent and
9.7 percent, respectively. These led the industry sector to expand by
10.9 percent, faster than the seven percent for services and 3.3 percent
for agriculture.
The Department of Budget and Management earlier said it had released
at least 80 percent of the full-year infrastructure budget in the first
quarter of the year. As a result, government expenditures grew nine percent year-on-year at end-March.
"The 7.8 percent growth exceeded market forecasts, including my own.
At the rate we're going, the Aquino administration may hit the 7-8
percent growth by 2016," Balisacan said. Analysts had forecast economic growth of no more than six percent for the period.
Sticking to full-year target
Despite the economy's faster-than-expected growth, Balisacan said NEDA is "sticking" to its full-year growth target range.
"While we recognize our robust performance in the first quarter, we
will continue to be vigilant against downside risk and address critical
constraints to maintaining this growth momentum. We remain positive in
our outlook and we will translate this into postiive action to achieve
inclusive growth," he said.
"The bottom line is our economy diversified -- that would be good for
the stabliity of our economy," he added, referring to the weak global
growth that has led to the contraction of Philippine exports in the
first quarter.
In a statement, Finance Secretary Cesary Purisima said the
government's improving finances "drove a substantial expansion in
expenditures and public construction," which were up 13.2 percent and
45.6 percent, respectively.
He also noted that the growth was not hollow, as it was accompanied
an improvement in the economy's productive capacity, citing the 47.7
percent increase in capital formation. This included a 16.8 percent
growth in fixed capital that stemmed from a 30.7 percent hike in private
construction, a 46 percent growth in public construction, and a 9.4
percent uptick in durable equipment.
Highest quarterly growth in non-presidential election year
On the sidlines of a forum held today on anti-corruption, Budget
Secretary Florencio Abad said the first-quarter expansion was led by
non-electornics manufacturing.
In Malacañang, Deputy presidential spokesperson Abigail Valte
said the first-quarter economic performance was the best quarterly
growth under the Aquino administration and the highest in a
non-presidential election year since 1988.
"More than economic growth, however, the Aquino administration is
focused on fostering inclusive growth. Therefore, our administration
will continue to promote and expand policies that lead to a Philippines
where no one is left behind," Valte said.
She cited the four-fold increase in the budget of the Pantawid
Pamilyang Pilipino Program, which to date has helped more than 3.9
million Filipino households.
With reports from Dexter San Pedro and Ben Arnold O. De Vera
InterAksyon.com means BUSINESS
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