MANILA, Philippines – After the impact of several natural disasters that affected the country’s economic growth, Philippines had regained its standing as one of the strongest and fast-growing economy in Asia in the second quarter of the year, reports said.
According to the reports, the Philippine economy grew by 6.4 percent in the second quarter and it definitely shows that the country has finally recovered from the 5.6 percent rate recorded in the first quarter, mostly due to the effect of major calamities that entered and devastated the country.
“This higher growth rate, coming from a high base a year ago, shows that the economy is back on the higher trajectory of growth,” said Economic Planning official, Arsenio Balisacan.
“We remain as one of the bright spots in the region, the second-fastest-growing economy among major Asian countries for the period, tied with Malaysia’s performance,” he added.
The Philippines, tied with Malaysia, was ranked second fast-growing economy in Asia. Balisacan is optimistic that the country can still attain the target for the whole year which is 6.5 to 7.5 percent growth in gross domestic product, following the industry’s robust performances, as well as the country’s services and export sectors, including electronics and agricultural products.
The incoming money sent from millions of overseas Filipino workers around the globe, as well as the employment of almost a million of people in business outsourcing industry, is a big factor of fueling the growth of the economy.
In 2012, the country’s economy grew up to 6.8 percent and has reached 7.2 percent in 2013, however, Chief Market Strategist of BDO Unibank Johnathan Ravelas said there are concerns about those rates’ sustainability.
“It’s a decent rebound, but there are still challenges ahead,” Ravelas stated, citing all natural calamities that hit the country and the “political noise” as 2016 national elections approaches. He suggests that the government should increase spending on infrastructure and more reliable energy sources.