Government sees GDP growth of 6.1%

The economy is likely to grow by 5.9 to 6.1 percent this year, higher than government’s earlier forecast for a rise of 4.9 to 5.8 percent, Socioeconomic Planning Secretary Romulo Neri said yesterday.

The gross domestic product (GDP) growth will mainly be driven by the a resurgent services sector, which he said is likely to grow by 6.6 to 6.8 percent.

Neri added that the bullish forecast for the whole year could also be attributed to the better-than-expected 6.3 percent economic expansion in the first half.

However, the government is not revising its official target range of GDP growth due to concerns over higher oil prices and rising interest rates in the United States, Neri told reporters at yesterday’s mid-year economic briefing.

Agriculture output will likely expand 5.4 to 5.6 percent for the full year and industry by 5.3 to 5.5 percent, he added.

Earlier, Neri said the economy sustained its growth in the second quarter as the GDP expanded above the six percent-mark at 6.2 percent.

In contrast, GDP growth last year stood at 4.2 percent and 4.9 percent in the second in the second quarter and first semester, respectively.

But Neri said the country’s economic growth is not as strong as that of other countries in Southeast Asia, citing the economic improvements seen in Malaysia, Hong Kong, Taiwan, China and Singapore. – AFP