Domingo sees sustained growth for next two years

MANILA, Philippines - The Philippine economy is expected to sustain its positive economic performance in the second quarter for the rest of 2013 and in the next two years as new manufacturing facilities open and existing plants increase output, the Department of Trade and Industry (DTI) said.

“(Economic) strength is seen to continue,” DTI Secretary Gregory Domingo said in a text message yesterday, citing that growth would be supported by the strong performance of the manufacturing sector.

He said the economic performance seen in the second quarter may even be sustained “for the next two years at least, as the plants (which) recently opened and being constructed ramp up production.”

The National Statistical Coordination Board reported yesterday the economy grew 7.5 percent in the second quarter.

The acceleration of the economy was driven by the services sector, as well as manufacturing and construction.

As the economy expanded at a slightly higher 7.7 percent in the first quarter, the latest result brought the first semester growth to 7.6 percent.

Business groups said that while it is likely for the country to continue to see strong economic growth for the rest of the year, efforts to further improve the business environment to support the private sector would be needed.

“I am confident that growth is sustainable given that the rate is not distant from first quarter. I would have been worried if it had been much lower,” Management Association of the Philippines president Melito Salazar, Jr. said in a text message.

For the economy to continue to post strong growth, he said the government would need to further support the private sector through a facilitative business environment.

“More government expenditures on infrastructure and support to poverty challenged groups, and greater efforts to eliminate corruption will mean more growth in the future,” he said further.

For his part, Makati Business Club executive director Peter Perfecto said in a text message the group expects the economy’s positive trend would be sustained with the support of the industry and services sectors.

“Additionally, support for growth in manufacturing and agriculture will further this positive trend,” he said.

He said the country could likewise benefit further if issues in public-private partnership projects rollout, as well as in mining revenue sharing between the government and private sector are resolved.

“The business community is likewise one with government in making inclusive growth a reality so that the positive numbers can be felt more by the poor,” he added.