President Benigno Aquino III Malacañang Photo Bureau(file)
MANILA, Philippines – Buoyed by the robust 7.8-percent growth in the first quarter, President Benigno Aquino III on Monday expressed confidence that the economy would grow at the same rate or even faster in the second quarter.
The President declined to say whether he expected an upgrade from the Moody’s Investors Service, but predicted rosy prospects for the domestic economy in the second quarter.
“I don’t want to speak for an agency that I don’t belong to. I don’t want to preempt them… But I think the second quarter figures should be of the same ilk, and we are hoping that they will be the same or even better,’’ he told reporters, but did not elaborate.
Moody’s said that the budget surplus and the 7.8 percent growth of the gross domestic product were “credit positive.’’ Moody’s rate for the Philippines was a notch below investment grade.
Fitch Ratings and Standard and Poor’s have raised the country to investment grade.
The GDP last week reported a 7.8-percent growth in the first quarter, outpacing China and other countries to make it Asia’s fastest growing economy.
The growth, driven by manufacturing and construction, indicated that the country “may now be moving along a new growth trajectory,’’ Socio-economic Planning Secretary Arsenio Balisacan said last week.
The construction industry registered the biggest expansion with 32.5 percent growth for the first quarter compared to only 29.9 percent in the last quarter of 2012. The manufacturing industry grew by 9.7 percent.
Malacañang said the government would focus on “fostering inclusive growth’’ in the face of criticism that Aquino was presiding over a jobless economic boom.
Despite the growth figures, the Philippines faces a global slowdown and natural disasters.
Meanwhile, Aquino is flying on Friday to Myanmar to attend the World Economic Forum on East Asia.
Some 900 participants from 55 nations, including Aquino, are set to attend the forum which kicks off Wednesday.
Mr. Aquino said he would meet President Thein Sein and opposition leader Aung San Suu Kyi. He said he would also invite participants to next year’s forum to be hosted by Manila.
“We’re hosting next year the Asian version or Asian edition of the World Economic Forum. It’s a tradition that…the host country invites the participants prior to the conduct,’’ Aquino said.