Beating expectations of both local and international economists, the Philippine economy had grown 7.1% in the third quarter of this year according to the report of National Statistical Coordination Board (NSCB). The stunning growth of Gross Domestic Product (GDP) of the country places the Philippines on top of ASEAN countries, and second to China in Asia (China GDP growth is 7.7%). Here's the comparative list:
Philippines - 7.1%
Indonesia - 6.2 %
Vietnam - 6.11%
Malaysia - 5.2
"The beyond expectation third quarter growth was driven by the Services sector with the robust performances of Transport, Storage & Communication, Financial Intermediation, and Real Estate, Renting & Business Activities supported by the five consecutive quarters of sustained accelerated growth of the Industry and the seemingly weather tolerant Agriculture sector. ", NSCB reports.
Philippines - 7.1%
Indonesia - 6.2 %
Vietnam - 6.11%
Malaysia - 5.2
"The beyond expectation third quarter growth was driven by the Services sector with the robust performances of Transport, Storage & Communication, Financial Intermediation, and Real Estate, Renting & Business Activities supported by the five consecutive quarters of sustained accelerated growth of the Industry and the seemingly weather tolerant Agriculture sector. ", NSCB reports.
Good Governance is Good Economics
Meanwhile, Secretary of Finance, Cesar Purisima commented that the 7.1% GDP growth shows that the economics of good governance or Aquinomics works. With the government clear focus to regain people's confidence by trying to eliminate corruption, the investors and consumers alike responds positively.
Not Yet All Gears are Working
Secretary Purisima further said that the Philippines still have extra gears to further boost its economy. Citing why this impressive growth is significant, he stated three major reasons:
1. It is much higher than the 10-year trend of 4.7%
2. The growth happened while the world's economic environment is difficult. The advanced economies of the West are in crises.
3. It happened even though the mining industry (on of Philippines major industries) declined 2.2%.
He further added, "the peace agreement once completed and fully implemented represents another extra gear that will unlock the significant potential of Mindanao."
Investment Grade
With this latest figure, the Philippines had grown 6.5% in the first three quarters, well above its full-year growth target of 5-6% GDP growth.
The Philippines' sovereign credit rating is currently positioned one notch below investment grade in the three major credit agencies, Moody's, Fitch and S&P. However, it is yet to be seen if this latest figure will finally bolster the country to the coveted investment grade.
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| English: Philippines (dark green) / ASEAN (dark grey) (Photo credit: Wikipedia) |
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