(
FAST GROWTH. NSCB Secretary General Dr. Romulo A. Virola tells the press that the economy expanded by 7.3% in 2007, the fastest growth in 31 years. In photo left to right: NSCB-ESO Director Raymundo J. Talento, Dr. Virola, Secretary of Socio-Economic Planning and Chair of the NSCB Board Mr. Augusto B. Santos and NEDA-NPPS OIC-Director Myrna B. Asuncion. Official photo from NSCB.)
What do you know, while we were all worrying ourselves to depression, the economy grew 7.3% in 2007 – the fastest growth in 31 years.
Read this b
reaking news from INQUIRER.net:
MANILA, Philippines -- (UPDATE 2) The economy expanded by a forecast-beating 7.3 percent in 2007, its fastest pace in 31 years, boosted by the services sector, the government said Thursday.
"In an environment of benign inflation, low interest rates and a strong peso, the Philippine economy turned in its best performance in 31 years," said Romulo Virola, the secretary-general of the National Statistics Coordination Board.
"On the demand side, increased consumer spending, investments in public and private construction, government spending and exports of non-factor services largely contributed to the remarkable performance of the economy."
Following the strong performance last year, Economic Planning Secretary Augusto Santos said the government is maintaining its forecast that growth will slow to 6.3-7.0 percent in 2008 given the expected slowdown in the US, the biggest market for Philippine exports.
"What we are saying is that if there is a recession in the US, then that will affect us, but the situation is closely being monitored," he told a media briefing.
Santos said the world's largest economy is unlikely to slip into recession.
"As we see it, there may in fact be no recession in the US given the stimulus package of the Bush administration.”
Here’s how our growth rates look since 2000:
2000 -- 4.38
2001 -- 1.76
2002 -- 4.45
2003 -- 4.93
2004 -- 6.38
2005 -- 4.87
2006 -- 5.45
2007 -- 7.3
Before the announcement, analysts were expecting a 50 basis point cut in the central bank’s policy rates. Now, they are saying it could be smaller at 25 basis points. We will know for sure in a few hours. A bigger cut would have been better for stocks, not so good for bonds, but investors can’t really complain with the 7.3% figure.
Of course, economists will be reacting all over the place in the next few days. There were several significant upward revisions in the quarterly growth rates. The third quarter 2007 figure was revised upwards by 1.0 percent, there was a 1.7 percent rise in the second quarter and 2.5 percent revision in the first quarter. Economists in Ateneo de Manila and the University of the Philippines will have a field day commenting on how long it took the government to report on these revisions.
Here's hoping our net worth grew as much, or more than 7.3% in 2007. Even better if our emotional and wellbeing balance sheets register high net worth. Have fun today and enjoy each moment!
"A bigger cut would have been better for stocks, not so good for bonds, but investors can’t really complain with the 7.3% figure."
its bad for upcoming bond offerings but better for existing bond yields due to MTM. =D
7.3%? I don't believe it. I don't care what you or anybody say! Its a FAKE JUST LIKE THE FAKE PRESIDENT OF CEBU.
well, it certainly sounds nice but ya, they're statistics. by the government. Perhaps they should explain how they came up with such figures.
If we're doing really well, how come there is little sign poverty is alleviating and there is less migration of people to other countries.
salina,
one just need to look at progress in metro manila, the changing skyline, new airports, roads and faster telecommunications to confirm the number.
"President of Cebu" is actually positive because at least we know that there is a part of the country that actually makes sense.
the direct beneficiaries, as always, are the business operators. if and when these persons or entities reinvest their earnings in expansion, in the pursuit of new initiative or otherwise that translates to job creation will poor juan dela cruz stand to gain as a gainfully employed, though most likely underpaid, worker.
The news on ‘booming economy’ turned reader’s stomach
+++++++++++++++++
Ha, Ha, Ha. I don't feel bad after saying that the booming economy Gloria Arroyo, Telling to the world is a FAKE JUST LIKE HER. Salina
+++++++++++++++++
Philippine Daily Inquirer
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Close this “Arroyo: Our economy is booming.” (Inquirer, 1/24/08) The moment I read the news, my stomach turned. Really, Ms President, our economy is booming? How come? My personal experience is: I’m still working abroad, my family complains of the rising prices of basic commodities. And because I have to support my family and send my kids to school, I don’t see myself settling or going back home in the next 10 years.
President Gloria Macapagal-Arroyo must be dreaming. And how insensitive for her to say that money remittances from overseas Filipino workers (OFWs), because these allow our kids to go to school, are helping expand our country’s manpower and raise its quality. To become what, Ms President? To become OFWs like us?
Instead of dreaming, the President should take concrete steps to bring us home by creating jobs that pay decently so that we can afford to stay with our dear families. Why not adopt a policy of genuine national industrialization instead of selling out our natural resources at international bargain?
I don’t see a booming economy; what I see is my children becoming OFWs just like me. There are no basic industries being put up that would employ my children in the future, right here in the country. What I see is a sellout of our young to foreign labor markets, because the Arroyo administration has no serious policy to industrialize or plan to reverse the policy of labor export.
The foundation of a robust and booming economy is local manufacturing and consumption. Right now, our economy imports too much, thus killing our local industries and agriculture and displacing millions of workers.
Our economy is not booming. It is buoyed up by OFW remittance; and our peso is getting stronger not because of the President but despite her stinking economic policy of labor exportation.
PHETZ ZANTUA (via email)
^^
you have to calm down people! unless you can do your own national income accounting, and good luck with that, you're just gonna have to assume that the data was gathered in good faith. even the most rabid gma haters use data from the nso (when it's favorable to them).
still, i don't think it's right to brag about it when little of that growth was felt by the majority. as far as most filipinos are concerned, these are just statistics.
Hi salve,
"A bigger cut would have been better for stocks, not so good for bonds..."
an interest rate cut may be good for (old) bonds as bond prices normally moves opposite interest rate movements, as most retail investors takes bond positions by buying into managed assets (mutual funds, UITs, maybe VULs), these rate cuts might boost earnings as there is already have an existing portfolio of (old) bonds.
thanks,
4
jay ricky Says:
February 1st, 2008 at 12:52 am
salina,
one just need to look at progress in metro manila, the changing skyline, new airports, roads and faster telecommunications to confirm the number.
“President of Cebu” is actually positive because at least we know that there is a part of the country that actually makes sense.
++++++++++++++++
Whatever. If you really believe Gloria Arroyo, So call booming economy I respect your your opinion. But, Her so call booming economy nothing but a lie just like she lies so many times to filipino people. If is not for the OFW'S money remittance the Philippines economy already collapse. And we all knew it too. If its true that the economy is rosy tell Gloria Arroyo, To tell all OFW'S to come home and find works. Let see if she can give them a job. If all OFW'S come home I'll guarantee you the Philippines economy will collapse in no time. Believe it or not. But, Go ahead and brag about your rosy economy, Because only the rich's can benifited. The poor still go to sleep with empty stomack. 70 Million's of them and counting.
jeff, thanks for clarifying that point. i was talking about new bond offerings, but i should have been clearer. how's business? regards! :)
yippieyuppie, that's a good question and one that politicians like Mar Roxas maximize to the hilt. The answer to your question is that economic growth take some time to trickle down to the bottom tier of the population. Let's say in a small town, there's a major bridge construction, the people who will benefit first are the wealthy businessmen because they can bring their goods to and from the town faster and at less cost. these other benefits will then later on be felt by the poorer sections of the society in that town. same with the whole country. Former president FVR tried to make a PR spin that his administration would go for the "bibingka" effect, meaning they would attack both at the top and at the bottom by providing social services for the poorest to help them benefit immediately from the higher GDP growth rates during his term. So far as I know, no administration has ever done that to the satisfaction of everyone in the country.
Being a member of the media, I am trained to be pessimistic and difficult to please, so that i could identify the PR spins from the truth. But during the course of my work, I *have* seen some real results of some of government's social programs for the poor. There *are* results, but like you, I hope there are more of them, enough to make a real difference.
People, people, people... Look at the BIG Picture.
The economy is improving, just look at the facts and figures and don't take any politicians word for it. Just plain hard facts. We are on the right track.
We have a lot of Jobs circling around, if there weren't any jobs available then the Classified Ads/Job Listing Sections would be empty! The problem is, a lot of people are too lazy to even attempt to improve their credentials to actually qualify for these jobs.
A boost in the economy does NOT automatically translate to poor people miraculously getting money (Juan de la Cruz waiting for the apple to fall instead of grabbing it) or jobless people miraculously getting jobs.
It is still the SOLE RESPONSIBILITY of the individual to fend for himself. Don't blame the government, the president or anyone else for your shortcomings.
We have an epidemic in this country called "VICTIMISM", everything that happens to us we automatically think of ourselves as victims!
Why don't we take responsibility of our own welfare and finally do something about it instead of whining and forever complaining!
Wake up People!
i also believe that the economy is growing fast. just not fast enough to be felt by everyone. but if this growth can be sustained, then more people will be able to benefit from it. that's a big if though. we don't invest much on human capital, which is bad because that's the only way we can achieve long-run growth and raise everyone's standard of living. if so much money is coming in, it's high time that the government spend a larger share of it in education. otherwise, high annual gdp growth rates like these will forever be a fluke.
ano ba ang problema mo salina?7.3 gdp ay positibong balita iyan its 1000 times better than politic news,please dont feel bad about it,its real and if we can sustain it good for all of us,including you.
Neri asks SC to stop Senate arrest order
Beleaguered Commission on Higher Education (CHEd) chairman Romulo Neri filed a petition for certiorari at the Supreme Court (SC) Friday in a bid to stop the enforcement of an arrest order issued by the Senate
++++++++++++++++
Only in the Philippines can do something like this. If the court going to stop the arrest order of Neri, Its only prove that there is no rule of law; In the philippines but mobsterer law.
Bert S, i agree with you that there are a lot of jobs here but a huge mismatch with supply of labor. i was in an interview with the Employment Resource Center (ERC) and they showed me how much demand there is for certain skill sets that our jobless people don't have. This problem also goes way back to our education system that over-emphasizes courses like commerce for example, when there are more jobs for welders, auto mechanics, etc.
I like what you said about VICTIMISM. Individual attitude also has some bearing on our situation in this country.
szechuan, everybody has been talking about investing in human capital. even the government, but it's not clear how exactly this should be done. i would like to hear more of your thoughts on this one :-) if you have the time.
Something smells in the data
+++++++++++++++++++
Not according to Salva & Gloria.
Anybody who believe Gloria Arroyo, So call booming economy is STUPID THEN I THOUGHT. No offense! I'm just telling the truth. If you don't believe me, It just too bad. But you well when the Philippines economy collapse.
EDITORIAL
02/03/2008
There was something smelly and not palatable with the way statistics are being suddenly and drastically revised by the Arroyo government.
A case in point was the third quarter gross domestic product (GDP), which the government statistics office said in a footnote to the “31-year” record growth performance it released Thursday that it was revised from 6.6 percent to 7.4 percent.
Amazing growth, considering the drought and the destructive typhoons that hit the country. Amazing, too, considering that manufacturing has been contracting, month, after month, after month.
But a list of data was supposedly updated, mainly on merchandise trade transaction, as a reason for the big kick up.
The sudden spurt in the government growth record was the reason Gloria, fresh from the World Economic Forum at the Swiss Alps, was able to proclaim to the world that the economy, in terms of GDP, grew 7.3 percent, while the gross national product (GNP) that takes into account remittances of the army of Filipinos working overseas rose 7.8 percent last year.
The government also revised the third quarter GNP growth rate to an astounding 8.8 percent.
Add to that, the figures showing that while it may take a lot of effort to prove that the figures are being massaged to suit Gloria, the frequent revisions of the economic data make every figure that the government churns out questionable.
The whole exercise in churning out economic data, more than making Gloria glow pink with self exaltation, was for local businesses to chart their road ahead for the year.
A difference of a decimal of a percentage point in the data may prove fatal to investment decisions, particularly those involving huge costs such as those in the property sector.
Now, we have the government saying the main economic data for the third quarter were off by nearly one percentage point.
The government can shrug it off as a pleasant error in the sense that the figure was ramped up instead of reduced by 0.8 points, but it still proved the unreliability of the numbers coming from supposedly official sources.
If such huge errors can be made, there would be less scruples for possible intentional managing of numbers for a crucial period, such as the visit of representatives of credit rating agencies that actually have only been made recently.
Would there be any difference if figures are padded for the meantime by 0.8-percentage point, and a quarter later say the figure was revised down or up depending on whatever the mood of those in Malacañang was for the moment?
The government has been censured internationally in the past for releasing way off figures.
Economists have bewailed the fact that they cannot rely on government for correct data.
The statistics institutions, in turn, have been complaining about the lack of funds and personnel for the skewed data.
Whatever the problem is, what was important for Gloria was that she can bask in the thought that the economy supposedly grew fastest during her term.
By the way, has not Gloria been proclaiming, one or two State of the Nation Addresses (Sona) back, that the country has the fastest economic growth in Asia and that it would be among the First World nation in 20 years?
Economists and representatives of multilateral institutions said it would need the economy to grow at least seven percent a year for the least of Gloria’s fantasies to come true.
So now the country had to have a 7.4-percent GDP growth last year.
What Gloria asks, Gloria gets — especially the untrue made into truth.
Escudero: Hunger, poverty continue despite economic growth
+++++++++++++++++++
What growth are you talking about. The so call booming economy Gloria Arroyo, Bragging about nothing but empty shell. she pad it just like she pad her votes in May 10, 2004. Presidential election. In order for her to become the FAKE PRESIDENT OF CEBU.
The masses have yet to feel the effects of the country’s economic growth as widespread hunger and poverty continue to stalk them, Sen. Francis Escudero said Saturday.
"This is not to belittle the GDP (gross domestic product) growth last year but there seems to be a disconnect between impressive economic numbers and depressing realities on the ground," Escudero said.
On Thursday the government announced that the Philippine economy grew a seasonally adjusted 1.8 percent in the final quarter of 2007 from the previous quarter.
The figure came above a 1.7 percent rise expected by analysts and pushed full 2007 growth well above the 7.0 percent figure forecast in a Reuters poll.
The government maintained a 2008 growth target of 6.3-7.0 percent despite the expected slowdown in the United States, the Philippines' largest trading partner.
Escudero, however, argued that the growth should be translated into more jobs, more food, and more houses for the people but official government data allegedly showed the opposite.
The legislator cited the latest survey results showing that 15 million Filipinos were still experiencing bouts of involuntary hunger. He also lamented that 8.75 million Filipinos are either unemployed or underemployed and lack of domestic jobs forced hundreds of skilled Filipinos to seek greener pasture abroad.
"When one million families need a roof over their heads, when 27 million of our countrymen cannot buy essential drugs, when five million do not have access to regular clean drinking water, or when three in 10 Grade 1 students won't be able to finish high school, then what we have is growth we can only read in the papers but one that we can't personally feel," he said.
Left-leaning think tank IBON Foundation Inc., meantime, belittled the government’s "hype" over its full-year 2007 economic growth, noting that the gains could not hide its alleged economic failures.
IBON research head Sonny Africa noted that amid the government’s rosy pronouncements the country’s unemployment rate showed the "worst joblessness of any administration."
Africa also pointed out that the average family income is at its lowest over the last 10 years while the manufacturing and agriculture sectors compared to their share in the GDP are at their smallest in the last 37 years.
"The growth that the administration hypes is meaningless for millions of Filipinos. It merely reflects the profits of a few big foreign corporations and their local partners," Africa said.
Legarda said the real challenge for the government was to “translate these rosy fiscal and monetary statistics into something that will actually alleviate the plight of majority of the Filipino
+++++++++++++++++
How can they translate this so call rosy economy Gloria Arroyo, Bragging about. When the so call booming economy nothing but PAD just like she pad her votes in order to win in May 10, 2004. Presidential election. Gloria Arroyo, Keep lying to the filipino people hoping we believe all her lies. Some of them do. But not this idiots. It just a matter of time before the Philippines economy will collapse. When that happen she won't know what hit her. And you're all going down with it.
We're all going down with this economy, says Salina/Prostitute Justice. Maybe we should all just leave the country, huh, Salina? You want all of us to just turn over and die and lose all hope and drive? Oh well...
@ salve
some people should rather not say anything at all.
21
Salve Says:
February 4th, 2008 at 5:50 am
We’re all going down with this economy, says Salina/Prostitute Justice. Maybe we should all just leave the country, huh, Salina? You want all of us to just turn over and die and lose all hope and drive? Oh well…
+++++++++++++++++++
Salve: I didn't say anything about dying just because Gloria Arroyo, So call booming economy is pad just like she pad her votes in order to win.
But once of these day all her lies will catch up on her. By then everything its too late. When that happen you won't know whats hit you. Don't take my word for it. Just wait and see.
About leaving the country, Thats a good idea! I don't live in the Philippines anymore. In America you can be what you want to be. In the Philippines only richs can survive. Richs are getting richer, Poor is getting poorer. Amen:
17
Salve Says:
February 2nd, 2008 at 6:01 pm
szechuan, everybody has been talking about investing in human capital. even the government, but it’s not clear how exactly this should be done. i would like to hear more of your thoughts on this one if you have the time.
++++++++++++++++++
Salve: The investing in human capital you're talking about is already done by Gloria Arroyo, To sell all filipino people to the highest bidder. Doctor's become nurse, School teacher's become supper maid. And if is not for these OFW'S money remittance sending the Philippines economy Gloria Arroyo, Bragging about already collapse.
14
rmb Says:
February 1st, 2008 at 4:25 pm
ano ba ang problema mo salina?7.3 gdp ay positibong balita iyan its 1000 times better than politic news,please dont feel bad about it,its real and if we can sustain it good for all of us,including you.
+++++++++++++++++++
Sir: I don't have problem. 7.3% is good if its true! But, Is not true! Because its been pad just like she pad her votes in May 10, 2004. Presidential election in order for her to win. And no! 7.3% is not doing me any good because I don't live in the Philippines anymore and even If I do this 7.3% Gloria Arroyo, Bragging about won't feel by the poor people because only the rich's can benifited by it. In fact I have to send more money ever before because the money I used to sent is getting lesser and lesser because of strong Peso. So, 7.3% don't do me any good. Its good for the people who believe in it. Ha, Ha.
bert s Says:
February 1st, 2008 at 10:29 am
People, people, people… Look at the BIG Picture.
The economy is improving, just look at the facts and figures and don’t take any politicians word for it. Just plain hard facts. We are on the right track.
We have a lot of Jobs circling around, if there weren’t any jobs available then the Classified Ads/Job Listing Sections would be empty! The problem is, a lot of people are too lazy to even attempt to improve their credentials to actually qualify for these jobs.
A boost in the economy does NOT automatically translate to poor people miraculously getting money (Juan de la Cruz waiting for the apple to fall instead of grabbing it) or jobless people miraculously getting jobs.
It is still the SOLE RESPONSIBILITY of the individual to fend for himself. Don’t blame the government, the president or anyone else for your shortcomings.
We have an epidemic in this country called “VICTIMISM”, everything that happens to us we automatically think of ourselves as victims!
Why don’t we take responsibility of our own welfare and finally do something about it instead of whining and forever complaining!
Wake up People!
+++++++++++++++++++
Bert: If what you're saying is true! Then tell all OFW'S to come home. They don't need to go oversea's anymore to find work because there is plenty of work available in the Philippines, As you say! I don't buy it,. You know thats a lie.
7
neinsager Says:
February 1st, 2008 at 2:42 am
^^
you have to calm down people! unless you can do your own national income accounting, and good luck with that, you’re just gonna have to assume that the data was gathered in good faith. even the most rabid gma haters use data from the nso (when it’s favorable to them).
still, i don’t think it’s right to brag about it when little of that growth was felt by the majority. as far as most filipinos are concerned, these are just statistics.
++++++++++++++++++
Yep! you got it. Its only number's. Its easy to add number's.....And Gloria Arroyo, Very good at it.
3
yippieyuppie Says:
January 31st, 2008 at 7:05 pm
well, it certainly sounds nice but ya, they’re statistics. by the government. Perhaps they should explain how they came up with such figures.
If we’re doing really well, how come there is little sign poverty is alleviating and there is less migration of people to other countries.
++++++++++++++++++
How can they explain it when all these so call booming economy nothing but lies! If its true the so call booming economy Gloria Arroyo, Bragging about why is it there is more and more filipino people leaving the country in order to find work. Why is it there is more and more filipino people going to sleep with empty stomach. Sabihin mo these so call booming economy she's bragging about nothing but pad. Period!
14
rmb Says:
February 1st, 2008 at 4:25 pm
ano ba ang problema mo salina?7.3 gdp ay positibong balita iyan its 1000 times better than politic news,please dont feel bad about it,its real and if we can sustain it good for all of us,including you.
************************
I guess you're one of these people who believe all the lies Gloria Arroyo, Telling to the filipino people. Sorry, But not this idiot.
How can anybody believe her when she already proven herself to be the number one LIAR.
The economy should expand 7% or more for 10 more years before it trickle down to the poor sector of the society,and the truth on this matter is that there is a pecking order in the distribution of wealth the rich being the top of the ladder and the working class and jobless at the bottom,and I feel sorry for the elderly and the disabled they will never make it in any of the level on the ladder unless the government will pay attention to their flights and woes.The economic fundamentals of the government seems sound to me as they were able to raise our economic prospects this year and the next,Thanks to the OFWs that help propel the economy,and whether we like it or not this government makes the difference.On corruption? that is another matter.