Neda chief sees 7% growth in 2017
The economy will likely grow by 7 percent this year, the country’s chief economist said Tuesday, on expectations of sustained recovery in the agriculture sector coupled with strong growth in the industry and services sectors.
Socioeconomic Planning Secretary Ernesto M. Pernia told the House appropriations committee that the country “remains on track in meeting the midrange of its full-year target of 6.5-7.5 percent GDP [gross domestic product] growth for 2017.”
For the GDP to expand by about 7 percent this year, quarterly growth of 7.2 percent must be posted in the second to fourth quarters following the 6.4 percent in the first quarter.
The government will announce the second-quarter GDP growth figure on Aug. 17.
“On the supply side, the rebound of the agriculture sector in the first quarter was a welcome respite after several quarters of decline. Overall, the services sector continued to be the main driver of economic growth. The industry sector likewise remains brisk, boosted by manufacturing and private construction,” noted Pernia, who heads state planning agency National Economic and Development Authority.
As for the expenditure side, “domestic demand remains strong in the first quarter of the year, although both consumption and investment decelerated from the previous quarter,” Pernia said, citing that “the moderation in household consumption was expected, as the effect of election-related spending dissipates.”
“Investment, on the other hand, was tempered by the slower growth in public construction,” Pernia added.
“On a positive note, the strengthening global demand, along with improved regional trading activities provided additional boost to growth. Exports of goods accelerated in the first quarter, the fastest growth since the third quarter of 2010. Similarly, merchandise imports remains brisk supported by higher purchases of capital goods and durables while services imports growth showed relative improvement,” according to Pernia.
For next year until 2022, the annual GDP growth rates had been programmed to increase and stabilize to 7-8 percent.
“With these growth rates, the economy will expand 50 percent by 2022 from its base in 2016. Likewise, per capita income is projected to increase from $3,550 in 2015 to at least $5,000 in 2022,” Pernia said. JE
