Neda: Above 7% growth in 2nd half ‘possible’

Economic growth would exceed 7 percent in the second half if the government sustains the jump in expenditures on public goods and services, the country’s chief economist said.

Socioeconomic Planning Secretary Ernesto M. Pernia told reporters last week it would be “possible” for the economy to grow 7.2 percent in the remaining quarters to achieve the midrange of the 6.5-7.5 percent government target for 2017.

Pernia, who also heads state planning agency National Economic and Development Authority (Neda), said this would be achieved “if there will be a kick in spending.”

The government will announce the second quarter gross domestic product (GDP) performance on Aug. 17. Pernia had said the economy could have expanded by at least 6.4 percent during the April to June period, tracking a similar pace as the first quarter due to the lack of election-related spending.

In June, disbursements jumped 23 percent year-on-year to P270.7 billion, the fastest monthly growth rate so far this year. It was also 28-percent higher than what has been programmed.

At the end of the first half, government spending rose 9 percent year-on-year to P1.331 trillion, albeit 0.4-percent below the P1.337-trillion budget for the period.