Philippines posts strongest GDP growth in SE Asia

For the third quarter of 2012, the Philippines ranked No. 1 in GDP growth in Southeast Asia, growing 7.1 per cent on a year-by-year basis and surpassing expectations even by the country’s economic managers.

Among all Asian economies, the country’s performance ranked second only to China, which posted a 7.7 growth.

This strong performance triggered speculations that by year end, the original target of 5 to 6 per cent full-year growth is on its way to being exceeded.  Officials said growth would likely approximate the previous 7 to 8 per cent goal required to spur employment and curb poverty.

The impressive second-quarter showing of the Philippine economy is attributed to a jump in farm output, a strong BPO sector, a construction boom,  robust domestic consumption and higher government spending.

Relatively stable prices, steady inflow of remittances, and rebounding exports supported growth, according to the National Economic Development Authority (NEDA).

Other industry sectors that performed strongly during the quarter are manufacturing and financial intermediation.

Ranking second in the region was Indonesia (which grew 6.2 per cent), followed by  Malaysia (5.2 per cent), Vietnam (4.7 per cent), Thailand (3 per cent) and Singapore (0.3 per cent).

The strong performance of the Philippines prompted Enrico Tanuwidjaja, economist for Southeast Asia if RBS in Singapore to call it the “diamond of the region this year.”

Presidential spokesperson Edwin Lacierda attributed the feat to “sustained confidence in the leadership of President Aquino and his administration, which has consistently equated good governance with good economics.”

Finance Secretary Cesar Purisima said that confidence in the way the country was being run has encouraged more people to do business in the country.

Makati Business Club Executive Director Peter Perfecto lauded President Aquino and his economic team, saying that “good governance is paying off.”

NEDA, nonetheless, cautioned against the external threat posed by the long-running euro-zone crisis and American fiscal problems, as well as the strengthening of the Philippine peso which can hurt local exporters.

 

Photo: from malaya.com.ph