RP economy grows 4.5% in Q2

RP economy grows 4.5% in Q2

Associated Press, Manila

The Philippine economy grew 4.5 percent on year in the second quarter of 2002, far better than market forecasts, data showed Thursday.

Growth in the nation's gross domestic product - the total of goods and services produced - was underpinned by output gains in industry and services, according to the government data.

The result exceeded analysts' forecasts of a 3.78 percent increase during the April-June period. It also outstripped growth of 3.7 percent in the first quarter and 3.5 percent in the final quarter of last year.

Exports, a major growth driver, recovered in the April to June quarter, ending a long spell of contractions that hampered the manufacturing subsector.

Farm output faltered in the second quarter, and isn't expected to provide the economy the boost it had in recent periods due to a predicted dry spell brought by the El Nino weather condition.

The Philippine economy grew faster in the second quarter than some of its neighbors.

Indonesia and Malaysia registered growth in their gross domestic products of 3.5 percent and 3.9 percent, respectively, during the second quarter, while Thailand forecasts growth to be "close to" the 3.9 percent it posted in the first quarter.

The strong second-quarter growth will make it easier for the government to achieve its target for GDP to expand 4 percent to 4.5 percent for the whole of 2002.