MANILA: The Philippines said yesterday that its economy grew by a better-than-expected 6.6 percent last year as confidence rose in President Benigno Aquino’s efforts to fight corruption and alleviate poverty.
A final-quarter expansion of 6.8 percent boosted the full-year figure, the government said, cementing the country’s status as one of the best performing in Asia and raising expectations of stronger growth in 2013.
“Aquino’s daang matuwid (straight path) has been the key to all this success,” Finance Secretary Cesar Purisima said, referring to the president’s top priority of tackling pervasive graft that he blames for deep poverty.
“This is a clear manifestation that good governance is good economics. Good governance generates confidence that translates to more economic activity.”
The full-year figure of 6.6 percent exceeded the government’s target of 5.0-6.0 percent, and was a big improvement from an expansion of 3.9 percent in 2011.
The Philippines economy, weighed down by huge government corruption and a turbulent democracy, had for decades been regarded as one of the laggards in Asia. Poverty rates worsened in the Philippines while improving dramatically elsewhere in the region. About one quarter of the country’s nearly 100 million people live on a dollar a day or less, according to government data.
Aquino swept to power in a landslide election victory in 2010 after campaigning to fight corruption, and has continued to enjoy record high popularity ratings amid a general sentiment that he is having some success.
Investor confidence has picked up, with share prices rising 32.95 percent last year and the benchmark index climbing higher into record territory in January.
International credit ratings agencies have also issued repeated upgrades. “All of the ingredients for the sustained growth of the economy are there,” Astro del Castillo, managing director of First Grade Finance, said.
Socio-economic Planning Secretary Arsenio Balisacan said the government would maintain its growth projection of 6-7 percent for this year, although in light of the current motoring of the economy this was a “conservative” target. He said growth in 2012 was broad-based, with the services, business, real estate and manufacturing sectors all performing well. AFP
