Q3 GDP growth seen at over 7%

The Philippines, which together with China registered the fastest growth in Asia in the first semester, is likely to have posted a growth rate of beyond 7 percent in the third quarter.

This was according to Arsenio Balisacan, director general of the National Economic and Development Authority, who said the combination of rising investments and strong household consumption helped maintain robust economic growth.

Balisacan said weaker-than-expected export revenues would drag growth, but the impact was likely outweighed by local investment and consumption spending.

The clash between government forces and members of the Moro National Liberation Front (MNLF) in Zamboanga City also had an adverse economic effect, but Balisacan said the impact on growth would be minimal.

The Philippines last year became one of the fastest growing economies in Asia when its economy expanded by 6.8 percent year on year.

It then became the fastest growing economy in Asia, together with China, when it grew by 7.7 percent and 7.5 percent in the first and second quarters of this year, respectively.

The Philippine government’s official growth target for this year was set at a range of 6 to 7 percent.

With the domestic economy’s performance in the first half, economic officials said there was a good chance the target would be surpassed.

The government, however, acknowledged that the fast growth was yet to be felt by the majority of Filipinos.

Poverty incidence in the country, at 27.9 percent as of the first semester of 2012, was one of the highest in Asia and not a significant improvement from 28.6 percent in 2009.