RP’s Gross Domestic Product to grow by 2% this year
Tuesday, 23 June 2009
Expected growth
A prominent businessman expects the country’s gross domestic product (GDP) togrow over two percent this year despite the measly 0.4-percent economic growthin the first quarter.
“The second quarter is a leveling quarter but hopefully, these third and fourthquarters will have some growths,” said Donald Dee, Philippine Chamber ofCommerce and Industry (PCCI) chairman emeritus and Vice Chairman of thePhilippine Exporters Confederation, Inc.
Dee said once the economy started growing thissecond semester, recovery will continue until next year.
He said the
United Stateseconomy is nearing bottom and is showing signs of recovery.
US to recover in 2010
“The
USis looking at a very good 2010 and it will take about six months for us to feelit,” he noted. “Just like when they entered into a recession in the secondsemester of 2007, we were hit already last quarter of 2008 and first quarter of2009.”
Dee said the global crisis hit Philippineexports hard especially electronic products, coupled with the very low growthof the agriculture sector.
The country’s GDP only grew 0.4 percent in the first quarter this year as theindustry posted its lowest growth for the last 20 years to 6.6 percent from 0.1percent in the previous quarter. The significant weakening of the manufacturingsector contributed mainly to the industry’s lowergrowth.
Same Prediction
Dee’s economic projection jibed with that ofeconomist Bernardo Villegas who expects the GDP to grow to 2.5 to 4 percent in2009.
Villegas said this year’s growth drivers are overseas Filipino workers'remittances, government infrastructure spending, agriculture, domestic tourismand expenditures of political candidates who will be running for the May 2010elections.
He said economic growth will accelerate to a high of six percent in the fourthquarter, from three percent in the second quarter and then 4 to 5 percent inthe third quarter. ---Danielle Venz, PHILEXPORT News and Features
