From the Website of GPH - Government of the Philippines
Statement of Finance Secretary Cesar V. Purisima
On the 2016 first quarter GDP Growth
On the 2016 first quarter GDP Growth
[Released on May 19, 2016]
The economy grew by 6.9% in the first
quarter of 2016, the fastest among the ASEAN-5, and outpacing China for
the first time in 27 years. Despite dampened global growth, the
Philippines posted its highest quarterly growth rate today in almost 3
years (since Q2 2013), marking 69 straight quarters of growth and 17
consecutive quarters of above 5% GDP growth.
Driving growth for the quarter is
capital formation at 23.7% (highest in 10 quarters), particularly fixed
capital formation, at 25.5% (highest in 23 quarters), equivalent to 5.8
percentage points of real GDP growth, in what is certainly a sign of
ever increasing investor confidence in our trajectory as people continue
to bet on the Philippines for the long haul.
Consumer confidence maintains its robust
character, with this quarter’s consumer optimism matching the all-time
high recorded in Q2 2013. This is reflected in the 7.0% jump in
household consumption, buoyed by low and stable prices and record
unemployment at 5.8% in the January Labor Force Survey, the lowest in a
decade. Enjoying the benefits of a better credit standing, commercial
vehicle sales leapt 23.4% this quarter, owing in large part to
attractive financing options and lower costs of borrowing.
Government consumption meanwhile,
accelerated 9.9% as the public sector continues to use our vastly
expanded fiscal space to invest in our people. Public construction
accelerated by 39.9% this quarter, as the government completes road
network projects and capital outlays in health and education.
Tourist arrival figures expanded 15.1%
compared to the 6.3% posted year-ago, pushing travel growth to 7.8%
compared to the 0.2% contraction same period last year. Miscellaneous
services exports grew 12% due to the sustained strength of the IT-BPO
industry, which now employs 1.3 million Filipinos and takes an 8% slice
of the GDP, fueling a virtuous cycle of consumer confidence and domestic
demand.
Macroeconomic fundamentals remain sound
with our current account surplus estimated at $8.9 billion or at least
3% of GDP. Our fiscal position is shaped for resiliency and
sustainability, with a record debt-to-GDP ratio of 44.8% in 2015 and a
foreign debt share of only 15.6% to GDP. Lengthened maturities
(currently at 10 years), a heavy domestic financing bias (at 58% in
2015), less bunching up (only 11.1% of the total debt stock redeemed
within the next 12 months), and lower interest rates (5.1% WAIR as of
end-March 2016) make our debt structure built to withstand global
turbulence.
The next administration and indeed, the
next generation, inherits a rapidly growing, vibrant Philippines
cushioned by robust foundations built over 6 years. The running 6-year
growth average of 6.2% is our fastest streak since 1978, which when
compared to the 3.8% average from 1995-2010 reflects how much we have
improved our structural growth capacity. Over the past 6 years we
committed to addressing our growth constraints, vastly ramping up
education spending by 125%, social services by 166%, health by 336%, and
infrastructure by 360%. This is an unprecedented amount of investment
making up for lost time and fulfilling our aspirational growth
requirements.
We are leaving the Philippines in a much
better place than when we first found it. The long night of vicious
cycles is over: Echoing President Ronald Reagan, I think it’s morning
again in the Philippines. President Aquino’s leadership driving good
governance has created a virtuous cycle of great economics, setting us
on a sustainable path to prosperity.
President Aquino’s legacy will best be
remembered, I think, for empowering Filipinos to believe that we can do
and be better. No longer the sick man of Asia, the Philippines emerges
more confident and more optimistic than ever, demanding to be governed
by even higher standards of governance than before.
Brighter days are ahead for Asia’s bright spot.
OTHER HUMAN RIGHTS PROMOTIONS WEBSITES
PROTECTION AND PROMOTION OF HUMAN RIGHTS
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