Gov't confident of sustaining high economic growth

MANILA, Philippines (Xinhua) -  The Philippine government said it is confident of achieving high economic growth in 2013 and 2014 despite external risks such as the uncertainty in Europe and the fiscal problem in the United States.

Socio-economic Planning Secretary Arsenio Balisacan said the manufacturing and construction sectors will help boost gross domestic product (GDP) which is projected to grow by 6 percent to 7 percent this year and 6.5 percent to 7.5 percent in 2014.

Balisacan said government spending for public infrastructure projects will increase construction activities.

"Also, manufacturing is expected to be more vibrant, particularly semiconductor and electronics, food manufacturing, and light manufacturing industries," he said in a presentation.

Balisacan said the services sector including business process outsourcing will continue to significantly contribute to the country's GDP.

While the farm sector remains vulnerable to typhoons, Balisacan said the government's "conscious effort" in pursuing programs and projects will ensure that local food production will be robust.

Aside from the uncertainty in the euro zone and the fiscal problem in the United States, he said Philippine economic performance could also be threatened by oil price increases due to higher global demand for petroleum products.

Last year, Philippine economy grew by 6.6 percent on the back of the strong performance of the services and industry sectors.