Driven by
the vibrant performances of the Manufacturing, Trade and Finance and
the resurgence of Agriculture, Fishery and Forestry in the first
quarter, the rebound of Agriculture, Fishery and Forestry and the
sustained momentum of Manufacturing in the second quarter, the
steady performance of Trade and Manufacturing in the third and
fourth quarters, aided by the resurgence of Trade, Transportation,
Communication and Storage (TCS) and Private Services in the fourth
quarter, the Gross Domestic Product (GDP) sustained its
growth upturn and accelerated to 5.4 percent in 2006, proof that the
Philippine Economy was still right on track. Latest economic
data from the reports of government agencies concerned showed that
this full year growth of 5.4 percent is within NEDA’s forecast band
of 5.3 to 5.6 percent, albeit 1 percentage point below the low-end
of the official growth estimates of 5.5 percent. Reports also
stated that the full-year economic growth was propped up by the
recovery in agriculture in the first three quarters and the healthy
performance of the services sectors all through the four quarters.
On the
demand side, the report continued, growth was led primarily by the
strong private consumption, the robust growth of exports and
government spending which was the result of fiscal pump priming in
the fourth quarter.
On the
expenditure side, consumer spending expanded in the fourth quarter
of 2006 fueled by the hike in the remittances of Overseas Filipino
Workers (OFWs). This continued increase in the Net Factor Income
from Abroad (NFIA) coming from our overseas Filipinos pushed the
Gross National Product (GNP) to a 6.2 percent growth at the end of
2006.
The
healthy performance of the ever resilient Services Sector which
again contributed the most to the total GDP this year continued to
boost the economy, although pacing slower once more. This
performance slowdown was continuously mirrored in the level of
business activities in the Philippine ports, a component of the
water transport sub-sector under the Services Sector, as port
indicators; i.e., cargo throughput, container throughput, passenger
traffic and ship traffic, showed decelerated growth at the end of
the twelve-month period in 2006.
