upbeat 11

No. 21 nnnnn 10.30.2008

Knowledge

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Upbeat No. 11 nnnnn 16.06.14

PHL to hit GDP growthtarget for 2014

The Philippine gross domesticproduct (GDP) growth rate will stillsettle within the government’starget of 6.5%-7.5% this year,experts said.

However, hitting the targetwould largely depend on variousfactors such as the weather,rehabilitation pace in SuperTyphoon Yolanda-affected areas,and government spending

on infrastructure.

"The growth target is attainable because the industrysector, particularly manufacturing, will boost GDPin the next three quarters with double-digit increases,”Ateneo de Manila University (ADMU) EconomistFernando T. Aldaba said.

Better weather conditions would allow particularlythe agricultural sector to improve its performance,Aldaba added.

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“The country’s economy still has to maximize benefitsfrom investment and government spending. Also, trade couldgrow faster in the second half of the year with stronger marketsabroad,” University of Asia and the Pacific (UA&P) EconomistCid L. Terosa said.

"The target will be achieved on the back of higher infrastructurespending by the government. Private-sector investmentswould also continue to grow due to the latest (credit) upgrade,"Asian Institute of Management (AIM) Policy Center ExecutiveDirector Ronald U. Mendoza said.

“Key growth drivers for the Philippine economy overthe remainder of 2014 will be continued strong growthof domestic consumption, underpinned by buoyant remittanceflows,” IHS Asia-Pacific Chief Economist Rajiv Biswas said.

Philippine economy grew by 5.7% in the first quarter of the year.The first-quarter growth was buoyed by the services and industrysectors, which grew by 6.8% and 5.5%, respectively.

The lingering effects of natural disasters such as Super TyphoonYolanda were evident in the agriculture, fishery, and forestrysector which inched up by only 0.9% during the period.

Despite the setback, the Philippineswas still the third-fastest growingeconomy in Asia in the first quarter,next only to China and Malaysia.

Meanwhile, President Benigno S.Aquino III plans to lure over USD 22Bof investments in highways and portsto improve infrastructure and createjobs, an undertaking that may becomeeven more successful with the helpof Filipinos abroad.