Economic Growth of the Philippines 2012

The Philippines' first quarter economic growth surpassed expectations but will it be maintained? Will it keep on growing or will it fall short by the end of the year.

Factors like global slowdown, the falling of the market, the increasing of calamities and the increasing of prices of commodities will hurt trade and slow down economic growth as analysts said.

Sustainability is the question as it is hard to maintain. Only change is constant in the global economy,

The government recently showed that the “Philippine economy expanded 6.4 percent in the first three months of the years” thanks to factors like benign inflation, growth in the service sector, increased expenditures whether household or public, recovery in the manufacturing sector and increased in wages of workers.“The actual first quarter economic growth is not higher than  4.9 percent forecast but is also better than the first growth of some countries like Japan (2.8 percent), Singapore (1.6 percent) and Thailand (0.3 percent).”

The Philippine Government is very confident that the economic growth will continue to rise in the succeeding months.

The Philippines will continue to rise up. Unity and Obedience will help our country be the best that it can be. No more to being underestimated by other countries.

“The full year 2012 GDP growth of 5 to 6 will be attainable or it may be exceed according to the reports."

The government's forecast is higher than the multilateral institutions forecasts for the Philippines. “Asian Development Bank sees that Philippine GDP in 2012 will expand to 4.8 percent economic growth in comparison to the World Bank which forecast a 4.2 economic growth.”

Reports stated that the constant oil price hike is a big threat to the economic growth. But despite these reports a full year GDP growth of 6 percent is expected to be achieved.

Factors like strong business confidence increase in expenditures, the rise in tourism, and some pick-up in the U.S. economy will likely to be the main drivers of economic growth. Acceleration in government spending and increased consumer and business confidence and being an eco-friendly person will help the country to rise up.

But some reports stated that the level of economic growth is difficult to sustain due to the world crisis in economy and given the fact that the global market is shrinking and volatile nowadays. Is the growth sustainable in the light of the current global crisis and the current calamities?

“Public construction has not recovered despite the 62.2 percent growth in the first quarter of the year. In comparison to public construction contracting by 37.9 percent in the previous year, the growth this year is only due to base effects.”

What was worrisome was the fact that the public construction was stalled in the first three months of the year and it contracted 9.9 percent in the first quarter of 2012.”

“In order to fix this dilemma, suggestions have been made that the government has to step up its public- private partnership projects and the implementation of its infrastructure program.” 

The government has to utilize the country's resources wisely and the government has to be ecofriendly from now on. People in the country should learn how to be eco-friendly and help maintain the resources of the country. the government should continue to invest on conditional cash transfer, human resource development and infrastructure in order to boost consumption, and investments that will support economic growth.

 The government recently showed that the “Philippine economy expanded 6.4 percent in the first three months of the years” thanks to factors like benign inflation, growth in the service sector, increased expenditures whether household or public, recovery in the manufacturing sector and increased in wages of workers.

http://mutualfundphilippines.com/2012/06/economic-updates/news-analysis-can-philippines-sustain-economic-growth-2012/