MANILA -- The Philippine economy continued to post economic gains in the second quarter at 7.9 percent, bringing the growth in the last six months of the Arroyo administration to a similar 7.9 percent on the back of “synergistic confluence of factors.”
“The peaceful national elections, improved investors confidence especially among local investors, the global economic recovery, increased capital expenditure of government and a low base fueled the domestic economy to a scintillating 7.9 percent growth in the second quarter of 2010 from 1.2 percent last year,” said National Statistical Coordination Board (NSCB) secretary general Romulo Virola.
Socioeconomic planning Secretary Cayetano Paderanga earlier made a government forecast of 5.9-6.9 percent for the second quarter.
The NSCB said the quarter’s gross domestic product (GDP), which is the total amount of goods and services produced in the country, is supported by the growth in the industry sector (15.9 percent) followed by the services sector (6.36 percent).
The agriculture, fishery and forestry sector plunged by 3 percent due to the successive storms in the last quarter of 2009 and the El Nino phenomenon in the first quarter this year.
The NSCB also revised the first quarter GDP growth rate from 7.3 percent to 7.8 percent while the gross national product (GNP), which factors net income from abroad, jumped to 7.9 percent.
Virola said the Philippines last experienced two consecutive quarters of above 7 percent in 2004, an election year, when it the country posted 7.2 percent and 7.1 percent respectively.
“We have once again shown that a high economic growth is attainable for the Philippines,” said Paderanga. (Virgil Lopez/Sunnex)