Philippine economy expands 4.4% in Q3

Philippine economy expands 4.4% in Q3

Associated Press, Manila

The Philippine economy grew by 4.4 percent on year during the
third quarter of 2003, outperforming Taiwan, Indonesia, Singapore
and South Korea, President Gloria Macapagal Arroyo said Thursday.

Gross national product rose by 5.9 percent on year during the
same period.

Arroyo said agriculture and investment spending led the way,
with macroeconomic fundamentals and sustained agricultural
modernization paying off, and overseas remittances on the rise.

"We are shaking off the lethargy occasioned by SARS, the Iraq
war and El Nino," the weather phenomenon, Arroyo said, adding
that confidence in the country's political stability has held
steady after the resolution of a failed coup in July.

She said she will keep up her government's efforts to
reconcile with various sectors of society.

"The fourth quarter will definitely push the blue line upward
if we keep on track, shun destructive politics and unite in all
fronts of national security and nation-building," she added.

The figures show stronger growth than some of its Asian
neighbors. Taiwan's gross domestic product in the July-September
quarter grew 4.18 percent from a year earlier, Indonesia's
expanded 3.93 percent, and Singapore's grew 1.7 percent. South
Korea's central bank has previously said it expects the country's
GDP to grow 2.7 percent in the third quarter.

The latest economic data puts the Philippines just above the
government's projected minimum 4.2 percent GDP growth forecast
for 2003, and outpaces economists' expectations.

A Dow Jones Newswires survey of eight economists before the
release of the official data estimated GDP, the value of all
goods and services produced, to have risen 4 percent on year in
the three months to September, in line with Socioeconomic
Planning Secretary Romulo Neri's earlier estimate.