MANILA (Mindanao Examiner / May 30, 2013) – Manila on Thursday trumpeted the country’s 7.8% growth in Gross Domestic Product in the first quarter of this year.
In a statement sent to the Mindanao Examiner, Presidential Spokesperson Abigail Valte, cited reports by the National Statistical Coordination Board, said that based on initial readings, the Philippine economy outperformed that of all Asian economies in terms of first quarter growth, including China, which grew by 7.7%, Indonesia, which grew by 6% percent, and Malaysia, which grew 4.1%.
“The growth in GDP is the highest quarterly growth rate posted under the Aquino administration; and the highest in a non-presidential election year since 1988,” she said, adding these results surpassed almost all market expectations.
Valte said the growth in the economy was felt in almost all sectors, most notably in local manufacturing, which grew by 9.7%. The continuation of government public expenditures was also a key to the GDP growth, increasing by 13.2%.
She said this was helped by the growth in the government’s spending in public construction, which expanded by 45.6%. By expenditure, capital formation likewise grew by 47.7%.
“Without doubt, the confidence of both investors and consumers remains strong, as economic activity accelerates even in an uncertain global economic climate,” Valte said.
She said more than economic growth, the Aquino administration is focused on fostering inclusive growth. “Since our administration took office, we have worked to drastically expand social safety nets to help the most vulnerable in our country,” she said.
Valte said most noteworthy of this growth is the four-fold increase in the budget of the anti-poverty Pantawid Pamilyang Pilipino Program, which to date has helped more than 3.9 million Filipino households.
She also said the recent local and national election results showed that the public has confidence in the President, and agrees with the direction the country is going. “Therefore, our administration will continue to promote and expand policies that lead to a Philippines where no one is left behind,” Valte said.
Poverty still unchanged
But despite the GDP growth report, the National Statistical Coordination Board said the state of poverty in the country remains unchanged. GDP is one the primary indicators used to gauge the health of a country’s economy. It represents the total value of all goods and services produced over a specific time period.
Secretary General Jose Ramon Albert in his April report said poverty incidence among population was estimated at 27.9% during the first semester of 2012 and comparing this with the 2006 and 2009 first semester figures estimated at 28.8% and 28.6%, respectively, poverty remained unchanged as the computed differences are not statistically significant.
The report, using data from the Family Income and Expenditure Survey, conducted by the National Statistics Office in July 2012, measured poverty incidence or the proportion of people below the poverty line to the total population.
The report pointed out that during the first semester of 2012, a Filipino family of five needed P5,458 to meet basic food needs every month and P7,821 to stay above the poverty threshold every month.
He said these respective amounts represent the food and poverty thresholds, which increased by 11.1% from the first semester of 2009 to the first half of 2012, compared to the 26% increase between the 1st semesters of 2006 and 2009.
Create jobs
This was also echoed by former Cagayan Congressman Jack Enrile who recently said that despite the constant reports regarding the country’s economic growth, this achievement has not translated into the creation of employment opportunities, particularly those that provide decent wages for majority of our work force.
“At least 2.76 million Filipinos are unemployed. And many of those who are employed have salaries that are way below the estimated family living wage of P1, 022 a month. What is ironic is that we have vast resources where enough jobs and livelihood can be generated,” he said. (Mindanao Examiner
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