The Department of Trade and Industry is seeing a sustained growth in the manufacturing sector as the non-electronics subsectors, fueled by investments, continue to expand.
In a statement, Trade Secretary Gregory L. Domingo said that the 9.9 percent growth figure of the manufacturing sector in the first half is sustainable and may not be considered a mere “fluke” because manufacturing plants are being constructed.
When the plants open, he said, expect a rise in the country’s manufacturing numbers.
Citing government data, the Department of Trade and Industry reported that the manufacturing sector grew by 9.9 percent in the first half of the year, surpassing the services sector which grew by 7.1 percent.
The chemical and chemical products, food manufacture, radio, TV, and communications equipment and furniture led the growth in the manufacturing sector in the second quarter of 2013.
Domingo said that there is a much wider manufacturing base now than before. In the last three years alone, non-electronics manufacturing plants have been put up by makers of high quality optical lenses, printers, medical devices, toys and garments. Investments continue to surge in the consumer goods sector.
The DTI chief also noted an increasing trend in the investment flows into the country, with foreign direct investments (FDI) amounting to $2.2 billion in the first half of 2013.
Approved investments by investment promotion agencies jumped to P398 billion from January to August 2013. The growth in investment inflow was supported by the construction of additional space for business process outsourcing (IT-BPOs) firms and expansion of industrial parks.
Improvements in the business environment are expected to fuel the country’s robust growth as inflation remains manageable, averaging at a low of 2.9 percent. Also labor costs in the Philippines—cheaper than those of neighboring countries—and the government’s thrust toward good governance continue to prop up the economy. Amy R. Remo