Neda: Ph econ among Asia’s fastest
Philippines surpasses economic growth of China (6.7%) and Vietnam (6.2%)
The National Economic and Development Authority (Neda) reported the Philippine economy is among the fastest growing economies in Asia after ending 2016 with an average full-year growth of 6.8 percent.
"Economic growth from the first to the last quarter of 2016 has been very encouraging, with an average full-year growth of 6.8 percent," said Secretary Ernesto M. Pernia, Neda Director-General, during the Press Conference on the Performance of the Philippine Economy for Fourth Quarter and Full Year 2016 yesterday at the Astoria Plaza, Ortigas Center.
"For the full year of 2016, we could be the second fastest, with China growing at 6.7 percent and Vietnam at 6.2 percent for the whole year," the socioeconomic planning secretary said.
He said the country's 6.8 average full-year growth last year is along the highend of the government’s target of 6.0 to 7.0 percent growth rate for 2016.
Neda also reported that the country's gross domestic product (GDP) for the last quarter of 2016 was at 6.6 percent, which was backed by higher investment and consumption.
"Although this is lower than the 7.0 percent growth in the third quarter of 2016, this is higher than the 6.3 percent growth recorded during the fourth quarter of 2015," Pernia said.
He also noted that the last quarter growth of an election year is usually slower than the first half due to the transition of government, and as investors adopt a “waitand-see” attitude.
"We are likely either the third or fourth fastest growing major Asian emerging economy in the fourth quarter after China’s 6.8 percent and Vietnam’s 6.7 percent," Pernia said.
He said domestic demand, in terms of investment and consumption, continued to fuel growth for the fourth quarter of 2016.
Neda also reported that exports rose to 9.6 percent in the fourth quarter of 2016 from 7.8 percent in the third quarter of the same year.
"Growth in imports likewise accelerated to 18.6 percent, supported by sustained increase in purchases of capital and durable goods, which indicate business and consumer confidence, and sustainability of growth," Pernia said.
Neda also sees that the country will retain its strong economic performance in 2017.
"Overall, given this growth in 2016, we believe that the target of 6.5 percent to 7.5 percent for 2017 is highly likely," Pernia said.
He said for 2017 they see the industry sector is seen to stay vibrant. The construction industry, in particular, will be in the limelight following the government’s aggressive commitment to approve and implement critical infrastructure projects," he said.
He said the services sector is also expected to remain strong, supported by moderate inflation, expected influx in inbound tourists, expansion in retail trade, a healthy financial system, sustained growth of remittance, and the continuing growth of the IT-BPM sector.
"Domestic demand has so far remained buoyant, and should continue to provide support to economic growth in the near to medium-term," he added.