RP posts 5.07 percent GNP growth

RP posts 5.07 percent GNP growth

MANILA (AFP): The Philippines' gross national product (GNP) grew 5.07 percent in the first half of 1994, boosting hopes that the country's struggling economy was finally on the way to recovery, officials said yesterday.

The National Economic and Development Authority (NEDA) said the growth rates posted over in the first six months to June was due to strong industrial activity and surging salary remittances of overseas Filipino workers, and a turnaround in agriculture.

The country posted a 2.27 percent GNP growth in the first half of 1993.

The gross domestic product (GDP) rose 4.1 percent, compared with 1.26 percent last year.

President Fidel Ramos said the growth was "private sector led," adding that investment and exports "have led all other sectors."

Socio-Economic Planning Secretary and NEDA chief Cielito Habito told a news conference all sectors contributed to the strong growth, with industry accounting for more than 50 percent of GDP.

The country's two million overseas contract workers remitted almost 40 billion pesos (US$1.54 billion) in the first six months, he added.

All sector

Although industry contributed the bulk, he said all sectors also grew in the first half, with signs that companies were increasing their productive capacities and not merely utilizing more of their unused capacity.

"The figures indeed show that the economy has further picked up steam," Habito said. GNP growth in the second quarter was 5.4 percent, and 4.5 percent for GDP, compared with 4.31 percent and 2.55 percent respectively in the same period last year. First quarter GNP growth was 4.84 percent.

Habito said the year-end growth figures were expected to be equally favorable, noting that the country's economy enjoyed its highest growth during the second half when companies build up inventory in preparation for increased consumption during the Christmas season.

He said this gave more credence to the government targets of six-to-eight percent GNP growth in the next three years. "We are doing better than anticipated," he said adding that "this just goes to show that we are on a path that is a sustainable one."