(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 breaking 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!
February 1st, 2008 at 8:10 am
jeff, thanks for clarifying that point. i was talking about new bond offerings, but i should have been clearer. how’s business? regards!
February 1st, 2008 at 7:39 am
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.
February 1st, 2008 at 4:53 am
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,
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.
February 1st, 2008 at 2:19 am
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
First Posted 00:10:00 02/01/2008
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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)