PHL output seen growing 6.5% in 2012

By SIEGFRID O. ALEGADO, GMA News

Published December 18, 2012 11:49am

(Updated 07:12 p.m.) The Philippines is set to achieve a full-year growth of “around” 6.5 percent this year – in the absence of “an economically traumatic experience” in the fourth quarter – as the manufacturing, construction, and services sectors add steam to main driver consumer spending.

On that note, Socioeconomic Planning Secretary Arsenio Balisacan told reporters the economy may settle “near” the aspired 7 percent to 8 percent level.

Citing the strong 7.1 percent growth posted in the third quarter that propelled year-to-date growth at 6.5 percent, Balisacan noted that government’s 5 percent to 6 percent target “will definitely be breached.

“To break that 6 percent you only need 4.6 percent for the fourth quarter, which is very unlikely,” he said.

“We don't have an economically traumatic experience this quarter,” the official added.

The Cabinet-level, policy setting Development Budget Coordination Committee has targeted a 6 percent to 7 percent growth in 2013 and 6.5 percent to 7.5 percent in 2014.

Providing a springboard for growth in next two years are the improvements in key sectors such as electronics and construction, Balisacan noted.

“There will be a more vibrant manufacturing sector buoyed by the semiconductor and electronics industry due to a better global economy,” he said.

“Construction will also increase due to roll-out public infrastructure projects and a slight uptick in private construction,” Balisacan added.

Services, housing, real estate, logistics and ship building will also be given more focus, the Socioeconomic Planning chief said. External threats

Balisacan, however, warned of offshore risks as the global economy sputters with the efforts to induce a recovery.

“While the global economy is hoped to recover beginning 2013, there is, however, the possibility of oil price increases due to higher global demand for petroleum products, especially in the advanced economies,” he said.

“Fiscal prudence will be maintained and inflation expectations will be well managed,” Balisacan added, noting that policy reforms should cushion negative effects of external developments.

Economic managers are also looking at utilizing bilateral and multilateral partnerships to strengthen the local industry.

“Given the strong growth of our Asian neighbors, the government will actively adopt policies to fully utilize the institutional setup provided by the ASEAN and our existing free trade agreements with Japan, China, and India to increase the Philippines’ role in the regional production chain,” Balisacan said. — VS, GMA News

Tags: phleconomy, grossdomesticproduct, neda, nscb, nationalstatisticsoffice