Upbeat No. 16.06.14 nn No. 2111 10.30.2008
PHL to hit GDP growth target for 2014 The Philippine gross domestic product (GDP) growth rate will still settle within the governmentâ€™s target of 6.5%-7.5% this year, experts said. However, hitting the target would largely depend on various factors such as the weather, rehabilitation pace in Super Typhoon Yolanda-affected areas, and government spending on infrastructure. "The growth target is attainable because the industry sector, particularly manufacturing, will boost GDP in the next three quarters with double-digit increases,â€? Ateneo de Manila University (ADMU) Economist Fernando T. Aldaba said. Knowledge Management and Information Service Makati City, Philippines Tel.: (632) 895.3611 Fax: (632) 895.6487 email@example.com
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Better weather conditions would allow particularly the agricultural sector to improve its performance, Aldaba added.
“The country’s economy still has to maximize benefits from investment and government spending. Also, trade could grow faster in the second half of the year with stronger markets abroad,” University of Asia and the Pacific (UA&P) Economist Cid L. Terosa said. "The target will be achieved on the back of higher infrastructure spending by the government. Private-sector investments would also continue to grow due to the latest (credit) upgrade," Asian Institute of Management (AIM) Policy Center Executive Director Ronald U. Mendoza said. “Key growth drivers for the Philippine economy over the remainder of 2014 will be continued strong growth of domestic consumption, underpinned by buoyant remittance flows,” IHS Asia-Pacific Chief Economist Rajiv Biswas said. Philippine economy grew by 5.7% in the first quarter of the year. The first-quarter growth was buoyed by the services and industry sectors, which grew by 6.8% and 5.5%, respectively. The lingering effects of natural disasters such as Super Typhoon Yolanda were evident in the agriculture, fishery, and forestry sector which inched up by only 0.9% during the period. Despite the setback, the Philippines was still the third-fastest growing economy in Asia in the first quarter, next only to China and Malaysia. Meanwhile, President Benigno S. Aquino III plans to lure over USD 22B of investments in highways and ports to improve infrastructure and create jobs, an undertaking that may become even more successful with the help of Filipinos abroad. n