Remittances, services to accelerate RP expansion

Increased remittances from overseas Filipino workers (OFWs) and a strong services sector are expected to make the Philippine economy grow at a faster rate during the third quarter this year. The economy is seen to expand anywhere from 1.6 to 2.6 percent from the July to September period, the National Economic and Development Authority (NEDA) said. Given the latest projection, NEDA director-general Acting Socioeconomic Planning Secretary August B. Santos expressed confidence that the country is on track to meet its full-year growth targets. For the whole of 2009, the government sees an expansion of 0.8 to 1.8 percent this year. Higher growth is expected in the fourth quarter because of Christmas spending and early election spending, Santos added. Money sent home by OFWs rose to $1.446 billion in September, 8.6 percent higher than the same month last year, data from the Bangko Sentral ng Pilipinas (BSP) said. Rising remittances – together with the strong turnout of the services sector – have offset damages wreaked by typhoons Pepeng and Ondoy. Earlier, the NEDA said that both weather disturbances have cut economic growth by 0.2 percentage points this year to anywhere between 0.6 percent and 1.6 percent this year. - GMANews.TV