GDP growth to top 5% in second quarter - Neri

Manila Standard Today

June 17, 2005

 

GDP growth to top 5% in second quarter — Neri

By Roderick T. dela Cruz

The country’s gross domestic product (GDP) will most likely post a growth above 5 percent in the second quarter of 2005, topping the 4.6 percent growth in the first quarter, Economic Planning Secretary Romulo Neri said yesterday.

The GDP expanded by 6.2 percent in the second quarter of 2004 and helped boost the full-year growth to 6.1 percent, the highest in 15 years. Second quarter covers the months of April, May and June.

Neri, who attended the launching of the Second Philippine Progress Report on the Millennium Development Goals (MDGs) at the Manila Hotel, expressed confidence the government would achieve its GDP growth target of 5.3 to 6.3 percent for 2005.

The Report on MDGs highlights the country’s progress in its commitments to eradicate poverty and hunger, promote access to education, reduce child and maternal mortality rates, halt the spread of HIV/AIDS, malaria and other infectious diseases, ensure environmental sustainability and promote a global partnership for development.

Neri said the agriculture, fishery and forestry (AFF) sector, which contributes 19 to 21 percent to the GDP, is expected to recover in the second quarter, with the onset of rains in El Niño-affected areas. The AFF sector shrank 0.1 percent in the first quarter because of weak crop production and significantly lower forestry output.

GDP, which refers to the total value of goods and services produced in the country, is considered the most accurate gauge of how the economy performs.

Neri, who serves as the director general of the National Economic and Development Authority (Neda), also predicted that GDP would grow by more than 5.5 percent in the second half of the year.