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."