Monday, May 31, 2010

RP Economy at Record High 7.3%

Arroyo's presidency has bear fruits, bringing in an economic pouring of 7.3% in its national growth from outrageous election spending, an okay-rise in remittances from abroad, and improved business and consumer confidence.

Both the GDP and GNP of the country outpaced expectations.

Augusto Santos, director general of NEDA, stated that “the improvement in the global economy, brighter economic outlook, increased business and consumer confidence, and election-related spending all contributed to the resurgence in economic activities."

The industrial sector, which embraces the fields of manufacturing, utilities, mining and quarrying, grew 15.7% during the first quarter, way better than last year's contraction of 2.6%. The services sector, which includes the growing business process outsourcing sub-sector, also increased to 6.1% in the first quarter. However, the agriculture, forestry and fisheries sector was hit largely due to the dry spell, contracting at 2.5%.

Santos suggested that to prevent stagnant growth or probable decline, the government has to increase spending on infrastructure, social services and education.

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