RP to post at least 6% GDP growth

The government and leading economists in the country are forecasting growth in gross domestic product (GDP) to reach at least six percent in 2007, providing the Philippine economy a much-needed lift.

Socioeconomic Planning Secretary and National Economic and Development Authority (NEDA) Director General Romulo Neri said they expect GDP growth this year to range between 6.1 to 6.7 percent, while the broader gross national product (GNP) would grow by 6.2 percent to 7.1 percent.

The government’s original goal for GDP growth was between 5.7 and 6.5 percent and for GNP, six and 6.9 percent. GNP is GDP plus net factor income from abroad, which is comprised of income from offshore investments and remittances from overseas Filipino workers (OFWs).

"If we have the seven percent (GNP) growth and sustain it, that will be the key in uplifting the people from poverty," President Arroyo said.

Two of the country’s leading economists share the view that GDP could expand by six percent in 2007, eclipsing the anticipated 5.6 percent growth in 2006.

Earlier, the local unit of Dutch financial giant Internationale Nederlanden Groep (ING) said it expects a modest 5.5 percent growth in the country’s GDP this year.

Victor A. Abola, an economist at the University of Asia and the Pacific (UAP), and Andrew F. Freris, chief economist for Asia BNP Paribas, both cited that among the key factors that would dictate on increased GDP growth are: Increased infrastructure spending and improved property sector; better revenue collections, including full implementation of the national attrition revenue law; weakening global oil prices, continued strong remittances; and a stronger peso.

Mrs. Arroyo said these projections are the reasons why she sees 2007 as a "boom year" for the economy.

"Our goal is to (have GNP growth) at seven percent by 2010. But according to the projections, we can hopefully achieve it this year," she said.

The President said this would be because of the remittances from OFWs, increased investments, particularly in real estate that could provide more jobs.

Mrs. Arroyo said she would ensure that these gains would be felt by the people through "social payback," meaning more investments in infrastructure to attract more investments and provide jobs as well as improved social services.