Philippines Registers 6.5 Percent GDP Growth In Q3

Manila, Metro Manila, Philippines (AHN) – The Philippines registered a 6.5 percent gross domestic product growth rate for the third quarter of 2010. Compared to the same quarter last year, this quarter’s economic growth rate was slower because of lower government spending and a decline in agriculture production from the El Nino weather system.

The National Statistical Coordination Board, which released the GDP data Thursday, said it was the highest economic growth rate logged for the first quarter of a new presidency.

The current Q3 growth rate broke the 5.6 percent recorded during the first quarter rule of immediate past President Gloria Macapagal-Arroyo in 2004. The two prior presidents had lower GDP growth rates during their honeymoon quarter at 0.7 percent during the time of Fidel Ramos in 1992 and 1.3 percent during the term of Joseph Estrada in 1998.

Based on the robust figures, the Office of the President said it indicates that the Philippines may hit its 2010 economic growth rate target of at least 7 percent.

Socioeconomic Planning Secretary Cayetano Paderanga forecast that given the low interest rates, business confidence will continue to improve, which would likely lead to a rise in production.

He said that the Q3 GDP growth rate compared with Asian neighbors such as Indonesia, which grew 5.8 percent, Malaysia at 5.3 percent and South Korea at 0.7 percent, but trailed behind China at 10.6 percent, Singapore 10.6 percent, Vietnam 7.2 percent, Thailand 6.7 percent and Hong Kong 6.8 percent.

Paderanga said in a statement, “Moving forward, the Philippine government will continue with the formulation and implementation of the needed policies and reforms that would keep the economy afloat amidst the fragile world economy, concerns on rising oil prices, and anticipated diminishing base effect. We expect growth to moderate in the second half of 2010 but we remain quite optimistic that we will exceed the 5 to 6 percent target.”

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