Saturday, 29 May 2010

RP investment rate rises to 17.4% in Q1

Manila Bulletin

The Philippines' domestic investment rate rose to 17.4 percent in the first-quarter, higher compared with the 15.7 percent in the same period last year, data from the Department of Finance (DoF) showed.

But the January to March investment rate of the national government is still among the lowest compared with the neighboring states and way below the desirable level of at least 25 percent of gross domestic product (GDP).

Other Southeast Asian countries, like Indonesia has an investment rate of 25 percent, while Thailand got 28 percent, Singapore also has 22 percent and Vietnam with 38 percent.

The country's investment rate in the first three-months of the year, meanwhile, is an improvement compared with only 11.8 percent in the fourth-quarter of 2009.

The country registered an investment rate of 14.2 percent last year, a decline from 15.2 percent in the previous year.

Raul Fabella, an economist from the University of the Philippines, said the next president must set “ambitious but doable” targets that could influence the first few years of the succeeding administration, to achieve a 6 percent average annual GDP growth from 2010 to 2020. Fabella said the GDP growth should be accompanied with an annual investment rate of around 25 percent for the country to reduce poverty incidence to 10 percent by 2020.

In the first-quarter, the Philippine economy posted a 7.3 percent growth, that is the fastest pace since the second quarter of 2007, and beats the 4.4 percent median forecast of 15 economists surveyed by Bloomberg News.

Economic Planning Secretary General Augusto Santos, said 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. (CSL)

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