Nov. ’13 factory output grows at fastest pace in over 3 years
Manufacturing output rose at its fastest pace in over three years in November last year, boosted by robust demand here and abroad.
The National Statistics Office reported Friday that manufacturing output, measured in terms of volume, grew by 21.3 percent in November 2013 from the previous year, the fastest pace since September 2010.
The top growth drivers were chemical products and furniture and fixtures, production of which rose by 203 percent and 147 percent, respectively.
Other sectors that registered robust production growth were non-electrical machinery (43.4 percent), tobacco products (34.6 percent), leather products (33.5 percent), basic metals (32.9 percent), rubber and plastic products (21.4 percent), and beverages (19.5 percent).
In January to November 2013, production volume of the manufacturing sector grew year-on-year by an average of 13.1 percent, accelerating from 7.5 percent in the same period the previous year.
The NSO also reported that manufacturing output likewise grew in terms of value.
Value of output rose by 16.2 percent year-on-year in November 2013 and by an average of 4.4 percent in the first 11 months of 2013.
Arsenio Balisacan, director general of the National Economic and Development Authority, earlier said sustaining the growth of the manufacturing sector was crucial in achieving inclusive economic growth since it can provide jobs to semi-skilled workers and those without a college degree.
Economists have said that the growth of the Philippine economy has yet to be felt by the grassroots as it is driven mainly by rising incomes of the middle class and the rich.
This means that economic growth has not yet led to significant poverty reduction.
The country’s poverty rate stood at 25.2 percent in 2012, one of the highest in Asia.
Acknowledging that the Philippines has yet to achieve inclusive economic growth, Balisacan said supporting the manufacturing sector was one of the highlights of the updated medium-term Philippine Development Plan (PDP), which is expected to be released this month.
He said the updated PDP calls for higher investments in the manufacturing sector, along with the agriculture and tourism sectors.
The manufacturing sector’s improved performance in 2013 was credited for helping drive the economy’s growth in the year.
The Philippines became one of the fastest growing economies in Asia last year, posting an average growth of 7.4 percent in the first three quarters.
Balisacan said the manufacturing sector was expected to grow some more this year on the back of improving business sentiment.
With help from the manufacturing sector, the Philippine economy is targeted to grow anywhere between 6.5 and 7.5 percent this year.
