GDP growth for first quarter in 6%-7% range — NEDA

The economy could have grown between 6 to 7 percent this quarter on the back of consumer and election spending, the country's economic chief said Monday. “My expectation is for the economy to grow within the government’s target of 6 to 7 percent in the first quarter. We’re expecting something within that range,” Socioeconomic Planning Secretary Arsenio Balisacan told reporters at the sidelines of a forum in Pasig City. “So far, indicators are favorable,” he noted. Output for the first and fourth quarter last year hit 6.4 percent and 6.8 percent, respectively, while the full-year gross domestic product (GDP) was 6.6 percent. Despite weak exports in January, Balisacan said spending will continue to buoy the country’s GDP. “Inflow of remittances has been steady, and spending—both consumer and election spending—is good,” he said. Merchandise exports in January fell 2.7 percent, reversing the double-digit growth the month previous on a sharp decline in electronics shipments. The National Economic and Development Authority has said indicators point to a recovery in exports in following months. Balisacan echoed such findings on Monday, saying electronics shipments will rebound as the global economy continues to improve. The amount of money sent home by Filipinos who live and work abroad, meanwhile, expanded by 8.4 percent in January to $1.9 billion from $1.7 billion in the same month last year. Remittances have long supported the country’s consumption-driven economy. The economic chief noted that the economy now has “greater momentum” getting steam from the higher-than-expected GDP growth in the last quarter. Balisacan expects growth in all quarters of 2013 to settle between the Aquino administration's targeted 6 to 7 percent growth this year. Sought for comment, University of the Philippines economist and former Budget Secretary in the Estrada administration Benjamin Diokno said growth may only be at 6 percent this year due to waning base effects. “Growth is high last year, so there must be greater steam to sustain growth,” he said. While spending in retail, wholesale and repairs will continue to provide springboard for economic expansion, Diokno said the government should ramp up infrastructure projects in order to boost GDP. “Without a greater push, the country's economy will hit a slightly lower trajectory next year,” he added. The government wants growth in 2014 settling between 6.5 to 7.5 percent. — BM, GMA News