Philippines Economy Growth for Third Quarter (2012)
The Philippines was at one time referred to as the “sick man” of Asia owing to its poor economic growth for a long time. However, the Philippines have had significant improvements over the in terms of economic growth. In the third quarter of 2012, the trend has not changed especially with analysts indicating that the growth was better that expected. The country experienced a 7.1 growth in this quarter alone (Fransisco 2012). The Philippines is among some of the South-East Asian economies that have managed to maintain a strong economic growth making them among the fastest growing economies in the world. The Philippine economic momentum has been increasingly steady, and the trend is expected to continue even into the future. The Philippine economy has seen one of its best years and has the capability to be sustained into the future.
The country’s GDP as reported by the National Statistical Coordination Board in the country suggested that the country had achieved a 7.1 percent growth from the previous year ending September 30 and from 6 percent at the close of the second quarter of 2012 (Reuters 2012). This was a surprise especially after analysts’ expectations that suggested a 5.4 growth (Fransisco 2012). This growth has been pegged to the massive industrial output that rose from 4.5 percent in August of 2012 to 8 percent at the close of the third quarter. The industrial growth has been achieved by the adoption of good government policy and enabling environment that has seen an increase in the number of investments coming into the country.
These results could also be attributed to the fact that the inflation rate in the country continued to drop further strengthening the Peso against other currencies in the world. In October, the inflation rate in the Philippines dropped by a 3.1 percent as compared to October of 2011. The core inflation rates, leaving out energy items and food, dropped from 3.8 percent in September to 3.6 in October. The growth rate in the country it seems will continue to grow as long as the economic conditions in the country allow it (Bhaskar 2012).
There have been strong consumer spending trends in the country. The country has experienced sturdy remittances from Filipinos outside the country increasing the spending capabilities of many Filipino (Reuters 2012). Consequently, domestic consumption in the country has increased cushioning the country form experiencing the effects of the global economic downturn. This situation has also been improved by the fact that exports from the country grew by 6.9 percent in this quarter despite the fact that it picked up later in the quarter.
The resilient nature of the Philippine service oriented economy has ensured that there has been a steady economic growth in the country. This is because a service-oriented economy depends on people’s continual need for services (Bhaskar 2012). This fact coupled by the effective policies that have been drawn up to counter effects of an expected economic downturn, the economy has the strength to withstand effects of economic turmoil that has rippled across the world. South-East Asia comprise of some of the fastest growing economies in the world. It is only a matter of time that Philippines experience a developed economy stature.
The Philippine president, Benigno Aquino, increased spending to record high while at the same time expecting that the over 17 billion dollars worth of investment in the transport industry (Reuters 2012). This investment was targeted at enhancing the road systems and the airports. In this regard, the economic growth of the country is undoubtedly expected to increase further into the future. This presence of political will in enhancing economic growth in the country has ensured that more investors are looking to invest in the country. Therefore, increased foreign investment accords the Philippines the chance of sustaining its already strong and steady economic growth.
References
Bhaskar, P. (November 27, 2012). Philipinnes GDP Rises 7.1% In Q3. International Business Times.
Francisco, R. (November, 28 2012). Philippine Economy Grew Faster Than Estimated in 3Q. Retrieved from http://www.jakatarglobe.com/economy-grew-faster-than-estimted-in-3Q-558644
Reuters. (November 27, 2012). Philippines Third Quarter GDP Growth Stronger Than Expected. CNBC. Retrieved from http://www.cnbc.com/id/49986571/Philippines_Third_Quarter_GDP_Growth_Stronger_Than_Expected
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