Alexa
  • Directory of Taiwan

Philippines posts 7.5 percent GDP growth in second quarter

Philippines posts 7.5 percent GDP growth in second quarter

The Philippine economy grew 7.5 percent in the second quarter compared to a year ago, the fastest rate in two decades, President Gloria Macapagal Arroyo said Thursday.
"Our economic plan is working. Today we have the latest glowing indicators to show it," a beaming Arroyo told a nationally televised news conference on the better-than-expected data.
She said gross national product, which includes income from abroad, rose 8.3 percent for the second quarter from a year ago
First-quarter economic growth, excluding the overseas income, was revised upward to 7.1 percent from the original 6.9 percent, pushing first-half GDP to an average 7.3 percent from a year ago, she added.
"We're confident of meeting our full year growth forecast of 6.1 percent to 6.7 percent," Arroyo said. The Philippines has defied expectations by increasing revenues, cracking down on tax cheats, strengthening the peso, boosting the stock market, balancing the budget, prepaying its debts and creating more jobs, she said.
The services sector remained the economy's linchpin, registering strong growth of 8.4 percent, while industry posted 8 percent growth, said Estrella Domingo, assistant secretary general of the National Statistical Coordination Board.
Arroyo said newfound money for investment has allowed the economy to increase its growth pace.
"While our economy has reached a new level of maturity and stability with one of the strongest macro-economic fundamentals in two decades, we should not rest, but push forward and sustain the momentum," she said.
Arroyo said revenue and deficit targets must be achieved to maintain investor and creditor confidence and keep the flow of low-interest capital strong.
Tax and customs agencies must hit their targets, she said, and business concerns over power costs and red tape must be addressed, while investments in small and medium industries, tourism and infrastructure must be intensified.
University of the Philippines Economics Professor Cayetano Paderanga told ABS-CBN Television that the growth rate was "surprising in the sense that it exceeded most expectations about what the growth would be in the second quarter."
He said the data need closer scrutiny, citing the "rather high" agricultural growth being reported and the expansion in manufacturing that comes at a time when exports are down due to the strong peso.


Updated : 2021-05-18 20:16 GMT+08:00