PHL economy to surpass 2010 target — Paderanga

The strong economic results the Philippines posted in the first half will drive the gross domestic product or GDP to grow beyond the 5-6 percent target this year, Socioeconomic Planning Secretary Cayetano Paderanga Jr. said Thursday. The economy will likely grow between 6 and 7 percent, Paderanga told reporters in a briefing. With the residual effects of election-related spending and pump-priming efforts of the government early this year largely over, the seasonal Christmas spending will drive the economy during the last three months of the year and expand domestic output by at least 6 percent, according to Paderanga who is also the National Economic and Development Authority’s secretary-general. This would help the economy to grow roughly 6.5 percent in 2010. "To get to 6.5 percent, you will need to grow by 6 percent in the fourth quarter. We expect fourth quarter growth to be at least 6 percent," he said. While the government is keeping an optimistic outlook for 2011, saying it expects to achieve 7-8 percent in GDP terms, Paderanga thinks it would not be easy with the global economy showing signs of moderation. "It would be easier to hit the target for 2010, because of election-related spending and robust recovery," he said. To egg on the economy next year, government will review its policies with a view to luring more investments, Paderanga said. The GDP, a measure of the value of goods and services, grew 7.3 percent in the first quarter, 7.9 percent in second quarter, and 6.5 percent in the third quarter. From January to September, economic growth averaged 7.2 percent or above the full-year 2010 target of 5-6 percent set the Development Budget Coordination Committee, a Cabinet-level inter-agency body. — JE/VS, GMANews.TV