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MANILA, Philippines -- The National Economic and Development Authority on Thursday said overseas Filipino workers' demand for housing and the service sector, specifically business process outsourcing (BPO), will drive the country's gross domestic product to grow 5.7 percent this year.

At the Senate hearing on the impact of the increasing oil prices, NEDA deputy director general Augusto Sanchez said: "The main source [of growth] is skilled services mainly from business process outsourcing and property development."

"There's a huge demand for housing buoyed by remittances from OFWs. The remittances this year is more than last year and those remittances triggered a lot of demand for housing, generically property development," he said.

While inflation is seen to increase by double-digits in July, Santos said the rise in the prices of basic commodities would "moderate a little bit in August because there are signs that oil prices may go down."

Santos said the demand for oil is going down because the market is adjusting. "Buyers are finding the prices very high and are looking for other sources so oil suppliers are forced to lower their prices," he said.

This year, inflation is still seen at a high of 9 to 11 percent.

Santos repeated the government's earlier pronouncements that it does not foresee a balanced budget this year or next year, but in 2010.

• OFWs in Kuwait warned against adultery
• May bank lending at highest since 1998
• BSP warns food, fuel prices could raise inflation further

• China wants new global monetary system
• Solons caution gov’t on privatization