The President while on state visit in Australia Thursday revealed that our Gross Domestic Product (GDP) grew by an unprecedented 6.9% for the first quarter of 2007.
This level of growth was the strongest in over 17 years. The biggest quarterly economic growth we had experienced before was in 1989 when GDP was recorded at 7.4%. This reported economic figure puts the Philippines as the third best performer in Asia behind China (11.1%)and Vietnam (7.7%). What attribute to this remarkable growth performance? Economic officials cited the following: sustained gains in the country's fiscal position where we incurred a lower-than-targeted deficit in 2006 (from Php125 B to Php 64 B) - leading to a resurgence of investors confidence; more foreign direct investments (FDIs) pushing the stock market to a 80-year high; low inflation; strong peso as a result of FDIs, increased OFW remittances, and business process outsourcing (BPO) revenues; brisk exports despite the strong peso. Of course, not to be overlooked is increased consumer spending due to OFW remittances and election spending.
Barring all other unforeseen negative factors it seems that the 6.1%-6.7% full year GDP target for 2007 is unreachable.
No comments:
Post a Comment