RP posts moderate 0.9% GDP growth last year

The Philippines grew by a modest 0.9 percent last year — within the low end of the government's target — after better-than-expected figures in the last quarter, the government said on Thursday. Gross domestic product growth came in at 1.8 percent in the fourth quarter despite twin storms that damaged crops in Northern Luzon. "This continued the trend of positive performance amidst the global economic crisis and recent natural calamities," August Santos, acting director-general of the National Economic and Development Authority (NEDA), said of the full-year performance. "The Philippine economy has never entered into a recession despite the odds," he added. The growth, while within the state's 0.8-1.8 percent target, was slower than 3.8 in 2008 and the slowest in a decade. The economy grew by a disappointing 0.7 percent in January to September last year amid the global economic slump. "Having kept the economy from a recession thus far, the tasks ahead are clear. As the cconomic resiliency plan delivers the primary goals of saving and creating jobs, protecting the most vulnerable, and starting infrastructure development to enhance competitiveness, we must ascertain that the subdued economic recovery this year will benefit most Filipinos," Santos said. The acting NEDA chief said the government would continue policies providing the right environment for key growth drivers — business process outsourcing, finance, mining and quarrying, construction, and private services. The NEDA has also identified high-value agribusiness/aquaculture, renewable energy, shipbuilding, tourism, information and communication technology (ICT) as major economic drivers. Santos said the global rebound was underway, and this year's elections will bring fresh mandate and new energy to the country. "Our optimism will be matched by measures to address our fiscal challenges, and we trust that our colleagues at the Bangko Sentral will continue with their appropriate monetary policies," he added. The government, he said, would continue safeguarding the welfare of Filipino workers overseas who send in dollars, and develop industries that will create jobs at home. "We have certainly survived the worst of the recession," presidential spokesman for economic affairs Gary Oliver told reporters at the Palace. He added that the Philippines was banking on the recovery of exports as its trading partners post similar gains this year. Monetary tightening "We are hoping that our trade partners will pull our economy up through our exports and the manufacturing sector. The prospects are bright this year," Olivar said. Strong remittances from Filipinos working abroad would also stimulate consumption and help maintain liquidity and a strong peso, he pointed out. The country's economic recovery, Olivar said, would pave the way for monetary tightening by the middle of the year. "The central can start thinking of going slow on its stimulus program," he said, adding that too much money circulating in the financial system could lead to a faster rise in consumer prices. "That's my best guess (central bank tightening by mid-year). The central bank is always on top of inflation because that is part of their mandate," Olivar said. — NPA, GMANews.TV