What does 7.8% Q1 PH growth mean?

Socioeconomic Planning Secretary Arsenio Balisacan says the first-quarter 7.8% GDP growth, the strongest growth under the Aquino administration, will have a greater impact on the lives of Filipinos if sustained over a long period. Balisacan adds the growth should be driven mainly by the industry sector, particularly manufacturing and construction, to generate the jobs that Filipinos need. The industry sector, in turn, should be driven by increased and sustained flow of domestic and foreign investments. The Philippines’ foreign direct investments amounted to only $2 billion in 2012, while neighbors had more than 5 times the amount. “The domestic economy is so much awash with cash… What we hope is that because of this business confidence, and the good fundamentals of the country, all this money sitting there could, eventually, become physical investments rather than financial investments so we can create jobs. In the end, it’s really investment that paces the employment generation.” Balisacan said. He adds, a steady but increasing pace of growth is what the government wants to achieve, breaking the country’s boom and bust cycle. “If we succeed in keeping the momentum even beyond 2016, the country should be able to join the likes of Thailand and Malaysia,” Balisacan said. In the past, growth was driven by consumption fueled by overseas Filipino worker remittances.

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