THE National Economic and Development Authority (NEDA) on Wednesday said that it expects the country’s gross domestic product (GDP) for the fourth quarter of 2011 to be higher by not more than 5 percent compared to the third quarter of the same year.
According to NEDA Assistant Director General Roberto Majuca, the 2011 fourth quarter GDP will be higher because of increased public spending particularly for public infrastructure and other capital outlays. The Disbursement Acceleration Program (DAP) is another reason for the growth as well as the holiday spending boost, the NEDA official added.
He said that on the production side, growth will be supported by the robust performance of the services sector, since agriculture suffered from the effects of several typhoons such as Pedring, Quiel, and Sendong, and industry suffered from the effects of the external environment like the European debt issues and Thailand supply chain disruptions.
On the expenditure side, the official added that household consumption was supported by the strong remittance inflows and government consumption benefits from the DAP.
On the other hand, capital formation benefited from increased public construction expenditure.
However, Majuca said that exports continue to suffer from negative external headwinds.
Overall, he said that NEDA expect the full-year GDP growth to hover between 3.6 percent to 4 percent. Gross domestic product is the amount of final goods and services produced in the country.
“However, we underscore that we make these forecasts [both quarterly and yearly] amid an uncertain economic environment, as many of the economic variables are in a state of a flux, and it is difficult to say with certainty where things would eventually settle,” the NEDA official added.
This coming January 30, the National Statistical Coordination Board is expected to present the performance of the Philippine economy for the fourth quarter of 2011 and for the whole of 2011, with NEDA Director General and Socioeconomic Planning Secretary Cayetano Paderanga Jr. as resource person.
According to NEDA Assistant Director General Roberto Majuca, the 2011 fourth quarter GDP will be higher because of increased public spending particularly for public infrastructure and other capital outlays. The Disbursement Acceleration Program (DAP) is another reason for the growth as well as the holiday spending boost, the NEDA official added.
He said that on the production side, growth will be supported by the robust performance of the services sector, since agriculture suffered from the effects of several typhoons such as Pedring, Quiel, and Sendong, and industry suffered from the effects of the external environment like the European debt issues and Thailand supply chain disruptions.
On the expenditure side, the official added that household consumption was supported by the strong remittance inflows and government consumption benefits from the DAP.
On the other hand, capital formation benefited from increased public construction expenditure.
However, Majuca said that exports continue to suffer from negative external headwinds.
Overall, he said that NEDA expect the full-year GDP growth to hover between 3.6 percent to 4 percent. Gross domestic product is the amount of final goods and services produced in the country.
“However, we underscore that we make these forecasts [both quarterly and yearly] amid an uncertain economic environment, as many of the economic variables are in a state of a flux, and it is difficult to say with certainty where things would eventually settle,” the NEDA official added.
This coming January 30, the National Statistical Coordination Board is expected to present the performance of the Philippine economy for the fourth quarter of 2011 and for the whole of 2011, with NEDA Director General and Socioeconomic Planning Secretary Cayetano Paderanga Jr. as resource person.
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