Industry to outpace service sector in PH?
MANILA, Philippines - The industry sector is expected to outpace the services sector for the 3rd straight time in the first quarter of 2013.
The growth of Industry will be driven by the manufacturing sector, Socioeconomic Planning Secretary Arsenio M. Baisacan told reporters that on the sidelines of the Philippine Economic Briefing on February 13.
In the 3rd quarter, Industry grew by 7.6%, faster than the 7.5% posted by Services. In the 4th quarter, Services was again eclipsed by Industry. Services only posted a growth of 6.9%, slower than the 7.5% posted by the sector.
Growth in the 4th quarter for Industry in 2012 was a two-year high. In the 4th quarter, the NSCB said the biggest contributors to Industry's growth were Manufacturing with 4 percentage points and Construction with 2.9 percentage points.
"I expect manufacturing to pick up even more and also investments. (It will) continue the momentum it established in the last two quarters. And then construction, I think, will also pick up," Balisacan said. "I think I expect that (Industry outpacing Services) to continue because you're coming from a low base."
Industry growth in the first quarter of 2012 was at 5.3%, slower than the 7.3% growth in the first quarter of 2011. The slower growth in the sector was due to a 10% contraction in the growth of Mining and Quarrying.
In the first quarter of 2012, manufacturing posted a slower growth of 6% from the 8.1% posted in the same period in 2011. Construction also slowed to 3.6% in the first quarter of 2012 from the 4.2% in the first quarter of 2011.
Balisacan also said, however, that economic growth will still be driven by the Services sector in the first quarter until the second quarter of 2013.
He said that Services already accounts for 55% of the Philippine economy. What will drive the sector's growth the first and second quarter would be tourism as the sector is expected to perform exceptionally because of the summer vacation.
"The services sector will likely drive the first, second quarter. Tourism will pick up kasi peak ng tourism. Kung winter sa developed countries, maraming turistang (pupunta dito) [Tourism will pick up because tourism will peak. If developed countries are experiencing winter, there will be a lot of tourists who will come here]," Balisacan said.
Tourism Secretary Ramon Jimenez said the prospects of the tourism sector is very bright, especially with domestic tourism driving growth. The government projects that by 2016, the sector would have booked 44 million domestic tourist trips. - Rappler.com