Economy likely grew faster in Q4 - Paderanga

MANILA, Philippines - The Philippine economy likely grew faster in the fourth quarter of last year compared to the 3.2 percent expansion recorded in the previous quarter, Socioeconomic Secretary Cayetano Paderanga Jr. said yesterday.

However, Paderanga conceded the fourth quarter growth would fall below the 7.1 percent expansion in the fourth quarter of 2010.

He said the 2010 growth was high compared to the performance of the economy last year.

Nevertheless, Paderanga remained optimistic that GDP growth improved in the fourth quarter because of improved spending. “I think it will be higher because spending has caught up,” Paderanga said.

However, Paderanga has yet to release the official forecast of the National Economic and Development Authority (NEDA) for growth in the fourth quarter of last year as well as full-year growth.

According to the latest data from the National Statistical Coordination Board (NSCB), the economy grew by 3.6 percent from January to September 2011, below the lower end of the government’s 4.5 percent to 5.5 percent growth target for 2011.

Paderanga said the implementation of the P72 billion Disbursement Acceleration Program has taken effect, starting in the fourth quarter of last year.

Finance Secretary Cesar Purisima, for his part, said the economic team would continue to be watchful of the global economy and work toward the goal of having a sustainable inclusive growth for the country.

NSCB secretary-general Romulo Virola said uncertainties abroad and unfavorable weather conditions contributed to the poor performance of the economy in the third quarter of 2011.

Virola has said that the economy would have grown at a slower pace if not for the positive performance of the services sector.

On the demand side, consumer spending bolstered growth in the third quarter.

By sector, the agriculture, hunting, forestry and fishery sector declined significantly by 3.9 percent.

On the other hand, industry rebounded slightly to 0.3 percent from a decline of 4.2 percent in the previous quarter.