Economic growth may exceed gov’t expectations


Socioeconomic Planning Secretary Arsenio Balisacan INQUIRER FILE PHOTO

Growth of the Philippine economy may actually exceed government expectations for this year as the country’s manufacturing sector and robust domestic consumption fend off economic shocks from Europe and the United States.

Socioeconomic Planning Secretary Arsenio Balisacan on Wednesday said that economic growth, as measured by the expansion of the gross domestic product (GDP), could exceed the administration’s target of 6 to 7 percent.

The country’s GDP, which is a measure of the value of all goods and services delivered in a certain period, grew at a faster-than-expected 7.8 percent in the first quarter of 2013. This made the Philippines Asia’s fastest-growing economy, outpacing regional giant China.

“If you look at the sources of growth, a big part of that are domestic (factors). And there’s so much space for domestic growth,” Balisacan said.

The government’s effort to address the infrastructure backlog in the country may be a “major source of growth,” he said, adding that consumption would also continue to be an important component of GDP expansion.

He said the US Federal Reserve’s possible move to scale back its accommodative policies should be taken as a sign of a stronger recovery of the world’s largest economy.

“That’s good because … global trade will improve,” Balisacan said, explaining that this would aid the recovery of local exports.

The National Statistics Office (NSO) said the value of Philippine exports fell by 12.08 percent year-on-year to $4.04 billion, prompting the administration’s to lower its official export growth forecast to 10 percent.

But according to Finance Secretary Cesar Purisima, emerging markets like the Philippines are expected to grow much faster than developed nations in the coming years.

“If we build a good set of industries that can create employment, then they can be consumption engines, and that should drive growth,” said Purisima.

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  • Noelnoel Munro

    Agreed to Purisima that we need to create employment. Not only call centres but manufacturing too. Pag may trabaho may sweldo, pag may sweldo may Tax. pero yung pabrika sana sa labas ng Metro Manila please lang.

  • Ako_Hiking

    What’s the point of all that if joblessness growth and poverty growth also exceed expectations? Economic growth essentially means nothing if it does not reach the poor masses. The trickle-down effect is just as important if not more important now.

  • joboni96

    kita na naman mga
    intsik switik at dayuhan

  • Adam_d_langgam

    hanep talaga ang mga tao ni budoy ..

    eh sa tumaas na ang stock market (ooppps … bumagsak na pala), strong peso (oooops… bumagsak na din pala), maganda ang gdp (ooooopss … record high unemployment)

    economics 101. halatang pasang awa ng nag-aaral si kulot. kaya galit ke gloria kasi palaging napapahiya sa klase dahil bopols.

  • kilabot

    lest anyone is deceived,
    this is a hoax;
    check unemployment, poverty rates;
    check fdi, exports;
    check prices, crime, flooding, power;
    if you still fall for this scam,
    then you are a pinhead yellow specie.

  • Roland_F

    The “higher than expected” GDP growth is not that unexpected during election campaigns (same like 2010 election) : high campaign spending (posters, advertising vehicles …etc…) plus massive vote buying is flooding the market with cash for consumption.
    After the new or often re-elected dynasties take their office and fill their pockets as fast as possible, ans surely the GDP will slow down again with all those funds siphoned off.

  • Weder-Weder Lang

    Of course it may exceed gov’t expectation. DBM under the leadership of LP stalwart Florencio Abad disbursed P1,300,000,000,000 (1.3 trillion) months before this May elections. Perhaps, partly in aid of public works construction and largely in aid of LP’s election. That 1.3 trillion is bound to go somewhere and inflate our GDP numbers. Anything less would be illogical and, say, corrupt.

    Source: business,inquirer,net/126141/73-of-ph-budget-now-in-hands-of-state-agencies

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