In the third quarter of the year, the Philippines made its mark as the best performer in Southeast Asia by growing a massive 7.1%. This is the strongest recorded growth in Asia during the period after China’s.
Socioeconomic Planning Secretary Arsenio Balisacan said the value of goods produced and the solutions delivered resulted to more jobs and better earnings for Filipinos. “We are well on our way to going above our set target of 5 to 6 % in 2012,” he says.
In the third quarter, agricultural output and recovery in exports jumped, contributing to 1.3% of economy’s rise in the July-September quarter from April-June. This was three times faster than economic experts had estimated.
Robust domestic consumption and higher government spending have helped protect the economy from the worst of the global crisis, while manageable inflation has allowed authorities to keep interest rates conducive to growth.
The Philippines is the only economy in the world which the International Monetary Fund (IMF) believes will grow faster than earlier expected this year.
IMF raised its 2012 growth outlook for the Philippines to more than 5 percent from its October forecast of 4.8 percent, citing the country’s sound fiscal and monetary policies. The momentum of its growth is expected to continue next year as government works on easing the cost of doing business and as more infrastructure projects under the private-public partnership scheme materialize.
The government has set its biggest infrastructure budget to date — P400 billion next season as it chases major improvements of streets, slots, connects and international airports to speed up development and increase private investment.
The peso is Asia’s best performing currency so far this year, up more than 7% against the US dollar on powerful international inflows into local stocks and bonds, motivated by predictions of continual and strong domestic growth.
Among several industries, Construction posted its highest growth in at least six quarters, jumping 24.3 percent from last year. Metro Manila is enjoying its best property boom in two decades.
Public consumption expanded an annual 12 percent in the third quarter, almost double the rate in the second quarter. Relatively stable prices, steady inflow of remittances, and rebounding exports further supported growth, according to the National Economic and Development Authority (NEDA).