Faster economic growth seen in 2nd quarter

Faster economic  growth seen in 2nd quarter

The Philippine economy was estimated to have grown faster in the second quarter than the 4.9-percent recorded in the first three months due to increased government spending and better performance of the financial market.

Deputy Governor Diwa C. Guinigundo of the Bangko Sentral ng Pilipinas told reporters that the second quarter was also not beset by factors seen in the previous three-month period, notably the political turmoil in the Middle East and North Africa as well as the earthquake and tsunami in Japan.

“Also, I think because of the carryover [from 2010] of the adjustment pains of the Aquino administration, there was modest spending in the first quarter of 2011,” Guinigundo said. “In the second quarter, based on the testimony of the Department of Budget and Management at the budget hearing [in Congress], there was a catch-up spending going through the second half of the year.”

Guinigundo added that monetary authorities noticed in the second quarter that the inflow of foreign capital going into the stock market and bond market was supportive of growth.

“Remittances from overseas Filipinos continued to be resilient in the second quarter and the business process outsourcing industry also contributed to more inflows,” Guinigundo said.

BSP documents showed that remittances coursed through banks in June reached a record monthly high of $1.7 billion. This brought the cumulative remittances during the first semester to $9.6 billion, an increase of 6.7 percent over the same period last year.

“All told, I think these developments will point to a better turnout in the output performance of the economy for the second quarter,” Guinigundo said.

As early as May, market watcher Barclays Capital said it was maintaining its full-year growth forecast of 5 percent for the Philippines despite the first-quarter performance settling lower than the 5.1 percent it expected.

Even then, the investment bank said in a research note that first-quarter GDP grew 1.9 percent compared with the previous quarter. This was “above expectations of 1.6 percent and compared with 0.3 percent previously.”

On the other hand, New York-based think tank GlobalSource Partners said the Philippine economy would still grow 4.8 percent this year despite an expected “increased lethargy” in the second quarter.

GlobalSource cited data on leading economic indicators from the National Statistical Coordination Board, which hinted at slower economic activity in the second quarter.

By: Ronnel W. Domingo
Philippine Daily Inquirer

12:08 am | Monday, August 22nd, 2011

REAKSYON NI JUAN PART 2: FASTER   ECONOMIC GROWTH SEEN IN 2ND QUARTER

Reading the article from Philippine Daily Inquirer dated last August 22, 2011 which talks about the Philippine economy makes me feel more positive that our country is continuously growing for a better development. It is nice to read and know about what will be the status of our economy for the second quarter. They have been estimated that the economy will have a faster growth in the second quarter. I am happy also that despite the presence of different factors that might affect our economy such as the political havoc in Middle East and Africa as well as the disaster happened in Japan, our economy has remained to its better status. In fact, our economy has never been affected and continuously growing because of the remittances of the OFW’s and because of the outsourcing industry. Knowing everything about this, I am proud and I salute all the OFW’s who have been the “living heroes” of our country specifically of our economy. They have been sacrificing themselves to give better lives to their family. Their safeties are at risk while working in other country just to send and provide their family with their needs. They are not only helping their own families but they have been greatly a big factor to boost our economy. With their big help, I think the government should give them proper and just benefits because without them, we cannot experience the continuous growth of our economy. The article has stated various figures that show an increase of our economic growth. Maybe the figures are not just high enough but a little increase in the growth of our economy really matters. No matter how small the increase is, it is really important to give emphasis on it.

Nowadays, I can feel the crisis of our country. The oil prices are continuously increasing. If there is a rollback, it is too low to notice. Even the price of the sardines will be increased. The sardine which has been the affordable canned good of those who cannot afford the expensive foods has been affected also. It is so sad that even this good has been affected because of the continuously increasing of everything in our country. I say everything because I cannot enumerate all the things that have been increasing for the past years. All the basic needs are increasing but the wages of the Filipinos are still the same. I am still a student but I am worried when the time that I will reach to that point where I will find my own work and I am the one who will provide me with everything. How will be the economy on that year? Is it still the same? Or will it be my greatest nightmare? 

Personally, I am sad and I am also happy. I am happy that there is still hope for all of this. That our present administration is working so hard to give what is right for all the Filipinos and for our country especially our economy. I am happy to read about this growth of our economy from my article. However, I am sad and worried on how long will all this take. Will it be a longer duration or will it be a temporary sweet taste of the hidden truth of what is really the status of our economy now? 

Well, I remain positive! It will be a joint effort of the citizens our country who still cares and hopes for the better development of our country.