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Economy grows by 5.9% in Q2

Posted on August 30, 2012 05:28:34 PM

BREAKING NEWS ( Updated as of 10:47:00 AM )

THE ECONOMY grew by 5.9% in the second quarter, slower than the revised 6.3% growth the previous quarter but an improvement from last's year's dismal performance.

Gross domestic product (GDP) growth was close to analysts' expectations -- the median forecast in a BusinessWorld poll was 5.86%. It was also an improvement from the 3.6% growth recorded in the second quarter of last year.

For the first half, GDP growth was faster at 6.1% from 4.2% in the same period last year, the National Statistical Coordination Board (NSCB) said.

"The resilient service sector remained the driver of growth," said Lina V. Castro, officer-in-charge of the NSCB.

Socioeconomic Planning chief Arsenio M. Balisacan noted that the country's 5.9% growth in the second quarter was higher than Malaysia's 5.4%, Thailand's 4.2%, Vietnam's 4.4%, and Singapore's 2.0%.

"Our economy remains cushioned, resilient with sound macroeconomic fundamentals. Government will continue to accelerate spending," he said.

The government's GDP growth target this year is 5-6%. The target won't be revised, Mr. Balisacan said.

For the third quarter, the impact of typhoons on agriculture would be "modest," he said.

"In response to the floods, government is speeding up investments in construction, rehabilitation. And that should help our economic growth," he added. -- Karen Joyce Q. Ang