Ph posts 6.6% economic growth in 2012

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This morning, the National Economic Development Authority (NEDA) announced the economy grew by 6.6 per cent last year, surpassing the government’s earlier forecast of 5 to 6 per cent growth.

The higher-than-expected growth is attributed to a strong performance in the fourth quarter.  In October to December last year, GDP grew by 6.8 per cent in the same period in 2011.

In the final quarter, the best performer among economic sectors is industry, which grew by 7.5 per cent, outpacing the services sector which posted a 6.9 per cent improvement. Agriculture went up by 4.7 per cent in the same period, reversing what used to be a downward trend.

For the full year, services went up fastest at 7.4 per cent, while industry accelerated by 6.5 per cent.  Agriculture grew by 2.7 per cent, the same rate it posted  last year.

“At the close of 2011, we in the Development Budget Coordination Committee or DBCC set the target growth of GDP at 5-6% and then proceeded to design a fiscal program that would support this growth. On hindsight, it now appears that the 5-6% target was a bit low although at the time, this seemed like a fighting target,” Socio-Planning Secretary Arsenio Balisacan explained.

Ramon G. Albert, secretary-general of the NSCB, said growth was fueled by the “robust performance of the services sector led by trade and real estate, renting and business activities as well as substantial improvements of manufacturing and construction.”

In the fourth quarter, public construction went up 7.8% while private construction jumped by 23.3%. For the full year, public construction went up by 32.4%, while private construction increased by 8.6%, data showed.

Balisacan said the government won’t be lulled into complacency but would instead lay in place policies and implement programs to sustain the economic growth over the medium term.  “ We shall continue planting the seeds of structural transformation in the economy to make it more investment- and industry-led.”

The NSCB said that with robust economic growth, per capita GDP accelerated by 4.8% in 2012 from 2.2% in 2011.

Interviewed by reporters the other day during NEDA’s 40th anniversary celebration in Pasig City, President Noynoy Aquino hinited the fourth quarter and full-year growth would be impressive, although he declined to prematurely disclose specific figures.  He simply said:  “All of us will be impressed.”

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