The Bangko Sentral ng Pilipinas expects the Philippine economy to hit the upper end of the official growth target of 6 to 7 percent this year as household consumption remains strong and investments rise.
The BSP said Tuesday that indicators pointed to a scenario wherein the domestic economy could again post a robust pace of expansion this year after an encouraging growth performance in 2012.
BSP Deputy Governor Diwa Guinigundo said that improving investor sentiment would help the Philippines duplicate its 2012 performance.
In the first three quarters of 2012, the economy, measured in terms of the gross domestic product (GDP), grew by 6.5 percent from a year ago. This was one of the fastest growth rates in Asia during the period.
The above-target growth came despite the weakness in the global economy, which was dragged by a crisis in the eurozone and fiscal problems in the United States.
Officials attributed the Philippines’ economic performance partly to growing household consumption, which was fueled by inflows from overseas Filipinos. Remittances from January to October last year reached $17.5 billion, up 5.8 percent from $16.53 billion in the same period of the previous year.
Officials likewise credited rising investments by the private sector and an increase in government spending for infrastructure for the faster economic growth.
In the third quarter of 2012, investments in fixed capital formation grew year on year by 8.7 percent, accelerating from 1 percent in the same period in 2011. Investments in construction grew by 24.8 percent, reversing the 8.6-percent contraction recorded previously.