Several bright spots, including the recovery of manufacturing sector and lower prices, can help boost the Philippine economic growth this year.
Brenda Mendoza, director of the National Economic and Development Authority (NEDA)’s Trade, Industry and Utilities Staff, said that despite the challenges of global environment, several bright spots remain.
Citing the International Monetary Fund World Economic Outlook and the World Bank, Mendoza in a recent briefing said the expected recovery of manufacturing by second half of 2012 can buoy the domestic economic outlook for this year.
She said the robust growth of the manufacturing was among the major contributors to the country’s gross domestic product (GDP) in the first quarter.
Others were retail trade; transport and communications; real estate; recreational, cultural and sporting activities; and banking institutions.
Data from the National Statistical Coordination Board (NSCB) showed top subsectors that contributed to the growth of manufacturing during the period. These were food manufactures; furniture and fixtures; wearing apparel; radio, television and communication equipment and apparatus; and non-metallic mineral products.
By expenditure, the net contributors to economic growth were net export of goods, household consumption, government consumption, public construction and durable equipment.
Mendoza said the receding commodity prices and the impact of the additional P9.02 billion for priority poverty reduction projects could also provide boost to the economy.
Moreover, she said the Philippines and other member countries of ASEAN 5 as well as the Middle East are expected to sustain growth.
The country’s economic managers predicted the Philippine economy to grow by five to six percent this year. GDP already grew 6.4 percent in the first quarter of 2012 from just 4.9 percent during the same period last year.
— Danielle Venz, Reposted from PHILEXPORT News and Features