Philip­pine eco­nomic growth quick­ens to 5.6% in Q2

The Pak Banker - - BUSINESS -

Philip­pine eco­nomic growth quick­ened in the sec­ond quar­ter, the gov­ern­ment said, plac­ing the coun­try in a bet­ter po­si­tion to weather the global fall­out from China's eco­nomic woes.

Of­fi­cials cred­ited the growth to "pru­dent fis­cal man­age­ment" and poli­cies pur­sued by Pres­i­dent Benigno Aquino, which has helped trans­form the coun­try into one of the fastest­grow­ing economies in the re­gion.

Boosted by higher gov­ern­ment spend­ing, the April to June gross do­mes­tic prod­uct (GDP) grew 5.6 per cent, out­pac­ing the 5.0per cent growth in the pre­vi­ous quar­ter, which was the low­est in three years, Eco­nomic Plan­ning Sec­re­tary Arse­nio Bal­isacan said. De­spite the re­bound, Bal­isacan said the econ­omy was likely to grow from 6.0 to 6.5 per cent for the full year, be­low the gov­ern­ment's 7.0 to 8.0 per cent tar­get.

Sec­ond quar­ter growth was also slower than 6.7 per cent dur­ing the same pe­riod last year, data showed. Bal­isacan and other of­fi­cials stressed that the growth showed the coun­try could weather the global fi­nan­cial tur­moil.

"Our eco­nomic fun­da­men­tals are still strong. We have to make sure we are mind­ful of the chal­lenges we are fac­ing," Bal­isacan told re­porters. "The qual­ity and the rate of growth of the Philip­pine econ­omy gives some as­sur­ance that with greater vig­i­lance ... we can with­stand the volatile mar­kets over­seas," he added.

Pres­i­dent Aquino's spokesman Ed­win Lacierda said the growth was due to po­lit­i­cal sta­bil­ity "along with pru­dent fis­cal man­age­ment". "This sta­bil­ity has helped the Philip­pines weather ex­ter­nal shocks, prov­ing once again that good gov­er­nance is good eco­nom­ics," he added.

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