Business World Online
Posted on January 23, 2011 10:14:24 PM
AYALA-LED Bank of the Philippine Islands (BPI) sees the country posting a "modest" economic growth this year versus its impressive performance last year.
"We expect the economy to show a more modest growth of 5.4% versus the impressive expansion in 2010...the Philippine economy will continue to be strong," Antonio V. Paner, BPI executive vice-president and treasurer, told reporters in an e-mail.
He, however, remarked that the Philippine economy will continue to be strong this year as investor and consumer confidence remains high. "Both investor and consumer confidence continue to soar on hopes that more meaningful reforms will be carried out by the new administration to put the Philippines in a higher and more sustainable growth path," he added.
The country’s gross domestic product (GDP) grew by 7.5% as of end-September, exceeding the government’s 5%-6% growth target for the entire 2010.
The government has yet to release its official full-year GDP figures for 2010. BPI has projected a 6.5%-7.5% growth for 2010.
Mr. Paner pointed out that the strong economic growth in 2010 will be hard to sustain this year since 2011 is no longer an election period, and 2010 was a strong rebound from an "unusually weak 2009 growth performance" of just 0.9%.
Mr. Paner said economic growth this year will be driven by the construction, energy, water utilities and cement industries.
He also said that remittances will continue to sustain the economy’s growth. As of November, remittances totaled to $17.069 billion, 8.2% higher than the previous year.
"Renewed investor confidence and [the country’s] competitive labor force will likely benefit the business processing outsourcing and tourism sectors," Mr. Paner said. -- Ann Rozainne R. Gregorio
He, however, remarked that the Philippine economy will continue to be strong this year as investor and consumer confidence remains high. "Both investor and consumer confidence continue to soar on hopes that more meaningful reforms will be carried out by the new administration to put the Philippines in a higher and more sustainable growth path," he added.
The country’s gross domestic product (GDP) grew by 7.5% as of end-September, exceeding the government’s 5%-6% growth target for the entire 2010.
The government has yet to release its official full-year GDP figures for 2010. BPI has projected a 6.5%-7.5% growth for 2010.
Mr. Paner pointed out that the strong economic growth in 2010 will be hard to sustain this year since 2011 is no longer an election period, and 2010 was a strong rebound from an "unusually weak 2009 growth performance" of just 0.9%.
Mr. Paner said economic growth this year will be driven by the construction, energy, water utilities and cement industries.
He also said that remittances will continue to sustain the economy’s growth. As of November, remittances totaled to $17.069 billion, 8.2% higher than the previous year.
"Renewed investor confidence and [the country’s] competitive labor force will likely benefit the business processing outsourcing and tourism sectors," Mr. Paner said. -- Ann Rozainne R. Gregorio
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