Philippine growth short of target at 5.8 percent in 2015

The Philippine economy grew 5.8 percent in 2015, short of even lowered government expectations after being hampered by a weak world economy, El Nino and slow government spending in the first half of the year.
The government initially forecast growth of 7-8 percent for 2015 but later lowered its projection to 6-6.5 percent.
“Though this is lower than what we targeted for the year, this growth is respectable given the difficult external environment,” Economic Planning Secretary Arsenio Balisacan said yesterday.
The Philippines has been one of the fastest growing economies in Asia for several years. Despite increased government efforts to raise living standards, the country of more than 100 million still faces considerable challenges including its vulnerability to typhoons and other natural disasters, poverty, corruption and poor infrastructure.
Balisacan said growth has averaged 6.2 percent in the past six years, which is the best performance since the late 1970s. The growth has not been due to unsustainable borrowings like in the 1970s and short-lived portfolio capital but fueled by investments that create jobs and increase incomes, he said.
He said last year’s growth was driven by much stronger domestic demand and government spending that grew 9.4 percent compared to the previous year’s 1.7 percent. Growth in public and private investments more than doubled, primarily led by public construction.
Finance Secretary Cesar Purisima said the Philippines was well-positioned to withstand turbulence in financial markets caused by uncertainty about the strength of the global economy. Teresa Cerojano, Manila, AP