Philippines bullish over Q2
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The Philippines is poised for strong economic growth in the second quarter of 2013 as domestic and foreign investments continued and more locally sourced goods were exported during the period, Economic Planning Secretary Arsenio Balisacan told reporters.
“I think it’s going to be quite a robust growth because so far the indicators are positive,” said Balisacan, who also heads the National Economic and Development Authority (Neda). “I still expect that investments will drive growth in the second quarter, and that the pace of expansion in the last two quarters of 2012 and in the first quarter of 2013 will continue.”
In general terms, Balisacan said second-quarter growth was likely supported by the same drivers as in the first quarter: Manufacturing, private and public construction, consumption and remittances.
Trade growth may well be tame, Balisacan said, adding that growth targets for this year’s imports and exports might have to be lowered to single-digits instead of original estimates of 10 per cent for imports and 12 per cent for exports. “Even the private sector has revised [its targets] downward so we have to consult with them,” Balisacan said.
International industry analysts see the semiconductor industry growing moderately in 2013, according to the Neda. “This may signal a recovery in the country’s electronics exports in the coming months following a series of contractions since December 2012.”
Balisacan also noted that agricultural exports as well as services exports through business process outsourcing were growing. Trade in services is growing rapidly at a double-digit pace, which Balisacan said made up for the softer growth in merchandise exports.
