Gov’t keeping 2014 growth goals as port congestion eases

The National Economic and Development Authority (Neda) on Tuesday expressed confidence that the growth goal for the year would be achieved in view of the easing of congestion at the ports following the lifting of the truck ban in Manila.

Neda director-general and Economic Planning Secretary Arsenio M. Balisacan told reporters that the government was expecting gross domestic product (GDP) growth to hit this year’s target range of 6.5 to 7.5 percent.

“We have grown far above 7 percent in many quarters in the past, so it’s possible to reach the GDP target this time,” Balisacan said on the sidelines of the Philippine Economic Briefing in Pasay City. The Philippine economy grew by 7.2 percent in 2013.

Balisacan noted that the economy should expand by 6.9 to 7 percent in the second half to achieve the lower end of the 2014 goal. The first half GDP growth slowed to 6 percent from 7.8 percent in the first semester of 2013, mainly as the daytime truck ban implemented in the city of Manila starting February slowed trade.

The truck ban caused delays in the entry of imported raw materials as well as in the delivery of finished products for export.

The Neda chief pointed out that the flat imports figure last July reflected the impact of the truck ban to the economy. At the start of the second half, the value of imported goods was almost unchanged, barely inching up by 0.002 percent to $5.4943 billion from $5.4941 billion last year.

He said the truck ban’s negative effect on the economy peaked in June and July.

The official nonetheless expressed optimism that the economy would bounce back, especially as exports and employment both posted growth in July.

Latest government data showed that merchandise exports jumped 12.4 percent to $5.5 billion last July from $4.9 billion in the same month last year.

As for employment, the government reported that the unemployment rate in July slid to 6.7 percent, 0.6-percentage point lower than the 7.3 percent recorded during the same period last year. Neda claimed that 1.06 million jobs were created between July last year and July this year.

Also, Balisacan said the damage caused the by the last two strong typhoons that battered the country “was not as severe as those caused by previous typhoons.”

“Hopefully, the recent typhoons don’t have much negative impact on the economy,” he said.

With the lifting of the truck ban in mid-September, the government hopes export and import figures “will be much better” in the last two months of the third quarter, the Neda chief said.