THE Philippines needs to grow by around 5.5 percent in the second quarter and at least 6 percent in the last two quarters of the year to be able to meet the low end of the country’s economic targets this year.

Myrna Asuncion, officer in charge of the National Economic and Development Authority (Neda) National Planning and Policy Staff (NPPS), said the country must be able to weather the threats posed by rising food and fuel prices if the gross domestic product (GDP) is to grow within the target of 5.7 percent to 6.5 percent this year.

Asuncion said double-digit inflation, which is expected to start last month, is expected to continue for the rest of the year, except for the fourth quarter.

She explained that the fourth quarter may slow down despite high consumption spending due to the holidays because high inflation started in the same period in 2007. Thus, what will work to Filipinos’ advantage is the high-base effect that could temper inflation figures.

“For the second quarter, sana makuha kahit gitna [we hope to hit the midtarget] or sana closer to the high end of the expectation of Secretary [Augusto] Santos na higher than 5.2 percent but less than 6 percent. But for the last two quarters, we need to hit a growth of 6 percent to be able to meet at least the low end of the government’s growth target,” Asuncion said in an interview.

Asuncion said for the second quarter, agriculture may still grow positively, even with typhoon damages to crops reaching P3.3 billion. She said that it was still a good thing that the typhoon hit the country after harvest season.

She said that the only thing that needs to be checked to ensure growth is if the harvested crops were also not damaged by the typhoon. If the harvested produce were spared by the typhoon, growth will still be ensured.

However, another thing that will work against the performance of the whole agriculture, fisheries and forestry (AFF) sector in the second quarter is the damage caused by Typhoon Frank in the fisheries sector.

Asuncion said the typhoon, which badly hit Iloilo, has destroyed the livelihood of many fishermen in the area.

Asuncion is hoping that for the second quarter, consumption spending will be able to keep growth afloat. She said spending associated with the start of the school year may have a positive effect on growth.

Earlier, Neda Acting Director General Augusto Santos told reporters that GDP growth in the second quarter will be significantly affected by high inflation brought about by high oil and food prices or imported inflation.

Santos said second-quarter growth will be higher than the 5.2 percent posted in the second quarter but lower than 6 percent. He said while food items are high, particularly rice, the main culprit was still oil since it is also used in food production, energy consumption and transportation.

GDP growth for the first quarter hit a two-year low of 5.2 percent largely due to costlier commodities, the slowdown in the United States economy and the strong peso.

GDP, the sum of all goods and services produced within the country’s borders, for the first quarter was lower than the economic growth achieved in the same period last year, which was pegged at 7.1 percent.

However, gross national product continued to grow by 7.3 percent, the same level it was in 2007.

RP needs to grow 6% in Q3 and Q4 to meet low end of GDP targets–Neda 

THE Philippines needs to grow by around 5.5 percent in the second quarter and at least 6 percent in the last two quarters of the year to be able to meet the low end of the country’s economic targets this year.

Investments OK’d by BOI, Peza up 140% to P205B in first 5 months

INVESTMENT commitments approved by the Board of Investments (BOI) and the Philippine Economic Zone Authority (Peza) in the first five months of the year increased by 140.49 percent to P204.77 billion compared with the same period last year.

Oil prices have increased by more than 50% in a year

OVER the past year, local pump prices have already increased by more than 50 percent, according to the estimates of independent think tank IBON Foundation, highlighting the urgency for the government to regulate the oil industry.

Oil crisis should lead RP to be more energy-efficient, says professor

DESPITE the expected difficulties brought about by the continuous increase in world oil prices, Victor Abola, professor at the University of Asia and the Pacific, said Thursday the current crisis on oil prices should lead the country to come up with a well-defined and implemented plan to be significantly more energy-efficient and save on power and fuel costs.

1,500 fishers affected by fish ban around Sibuyan Island to get government cash assistance for 3 months

Government officials are proposing a P35-million livelihood assistance for 1,500 fishermen who have lost their means of earning in the wake of the fish ban in San Fernando, Romblon, where a passenger ship capsized during a strong typhoon.

Atienza to include Romblon in ADB-funded project

ENVIRONMENT Secretary Lito Atienza has vowed to include the province of Romblon in the six-year Integrated Coastal Resources Management Project (ICRMP) funded by the Asian Development Bank (ADB). 

US assures RP during GMA visit it will speed up processing of protocols for banana exports

THE United States Department of Agriculture (USDA) has assured its Philippine counterpart during President Arroyo’s working visit to the US that it will speed up the processing of quarantine protocols to enable Filipino growers to export hard green bananas to the mainland.