GDP growth is sustainable

Department of Trade and Industry (DTI) Secretary Gregory L. Domingo said the estimated 2012 growth of 6.6 percent on gross domestic product (GDP) was sustainable and could be surpassed in 2013.
“This was sustainable, we could (easily) surpass this record,” Secretary Domingo said when asked personally of his reaction on the data released by the National Statistical Coordination Board (NSCB) on Thursday.
Secretary Domingo’s confidence could be attributed to the positive start of the year which, during the first two weeks of January, the agency had already recorded some P75 million new investments.
The DTI also started relaxing some foreign investment rules as it proposed to allow foreign contractors a 100 percent foreign equity to undertake projects as among its amendment to the Contractor’s License Law.
Moreover, the Senate’s ratification of a bill which would allow 60 percent foreign ownership on rural banks would surely fuel growth as more capital and financing facilities will become available.
For his part, Rick Santos, Founder and Managing Partner of DBRE Philippines, said “the confidence in the Philippines (to sustain its growth), from an investment standpoint, is very high.”
“The strong macro-economic fundamentals combined with an amazing confluence of events: renewed confidence in the country’s leadership, record low interest rate, a strengthening currency and an increase on the number of tourist arrivals, would surely help sustain the economic gains of 2012,” Santos said.
He added that the expansion of the Business Processing Outsourcing (BPO) sector has created a 4.5M square feet demand for new office a year.
“And with the increasing purchasing power of the consumers, demand for more residential and housing developments will continue to grow,” he added.
Fueled by strong service sector led by the trade and real estate, renting and business activities and the improvements in manufacturing and construction, the country’s GDP grew by 6.8 percent during the fourth quarter of the 2012 which paved the way for the full year GDP growth estimate of 6.6 percent. (PNA)