GDP grew by better than expected

According to the Institute for Development and Econometric Analysis, Inc. (IDEA) latest Newsbriefs, a weekly digest produced by IDEA, Inc. to highlight the most recent national and international economic events, the first-quarter economic growth of the country was astonishingly 7.8 percent, surpassing both the market expectations and the government’s target for the entire year. As noted by National Statistical Coordination Board Secretary-General Jose Ramon G. Albert, the surprising outcome resulted from the bullish business and consumer sentiment, and the maintained government capital expenditure. To date, the particular expansion was the fastest since the 8.9 percent notched in the second quarter of 2010. It was greater than the government’s forecast of 6 to 7 percent for the first three months, the 6.5 percent established in the same period last year and the adjusted 7.1 percent for the previous quarter.

Per IDEA, the great performance of manufacturing and construction sector, supported by financial intermediation and trade, enhanced the robust growth. Moreover, it registered the highest growth of 10.9 percent, beating the services sector. Furthermore, as revenues rose through yearly income tax collections, the government attained a fiscal surplus in the previous month, amounting to Php36.803 billion which is 18.6 percent higher than Php31.024 billion established in the year before. The Finance department said the outcome exceeded the Php32.8 billion target for April and was a new record high for the said month. During the fourth month of the year, the government expects surplus due to the fact that April 15 deadline for the filing of income tax returns supplies a revenue boost.

Likewise, according to the Bangko Sentral ng Pilipinas (BSP) chief, inflation for the month of May will likely be stable, taking into consideration lower power rates and the appreciation of the local currency. BSP Governor Amando M. Tetangco, Jr. said overall consumer prices could have surged by 2.2 to 3.1 percent this month which was the same forecast offered for April. The central bank strives for keeping inflation within 3 to 5 percent band this year and the next.

Per same published report. the competitiveness of the country has improved in a yearly ranking, sustained by substantial gains in its economic performance and overturning two successive years of deterioration. In the International Institute for Management Development’s 2013 World Competitiveness Yearbook, the Philippines ranked 38th out of 60, leaping five places from the year ago. The particular ranking is based on four general factors: economic performance, government efficiency, business efficiency and infrastructure.

Lastly, being more informed, Filipinos are getting more aggressive when it comes to their investments and are taking advantage of a buoyant market. At present, the younger generation tend to start investing in mid-20s, compared to the past when people began in their mid-30s, according to the researchers of IDEA.

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