|
By Darwin G. Amojelar, Reporter
THE Philippine economy may have grown at a
slower pace in the first quarter of the year owing to skyrocketing
food and oil prices, the National Economic and Development Authority
(NEDA) said.
Acting Socioeconomic Planning Secretary and NEDA
Director General Augusto B. Santos said the economy as measured by
the country’s gross domestic product (GDP) may have expanded
between 5.2 percent and 6.2 percent in the first three months this
year, or slower than the 6.9 percent seen last year.
Santos said agriculture, which contributes about
a fifth of GDP, may have grown between 3.6 percent and 4.5 percent,
while industry expanded by 4.4 percent to 6.2 percent.
For the services sector, growth may have come in
between 6.2 percent and 7.6 percent, he said.
The agency’s projection was lower than the GDP
target for this year of between 6.3 percent and 7 percent. The
development and budget coordinating committee, however, will revise
its GDP and other macroeconomic targets this year owing to high oil
and food prices.
For May 1 to 19, the Department of Energy said
the regional benchmark Dubai crude averaged $116 per barrel, while
diesel and gasoline averaged $154 and $127, respectively.
The National Statistics Office earlier reported
last month’s inflation rising to a three-year high of 8.3 percent,
breaching the Bangko Sentral ng Pilipinas’ (BSP) forecast of
between 6.4 percent and 7 percent.
In the first four months this year, inflation
already averaged 6.2 percent, surpassing the BSP’s full-year
target of 3 percent to 5 percent.
Monetary authorities earlier said they would
raise policy rates if a transport fare hike and the recent wage
increase further bid up prices. The government earlier approved a
P20 wage hike for daily minimum earner s and a P0.50 to P8
adjustment in public utility jeepney fares. The fares for ordinary
and air-conditioned buses will also rise to P9 and P11.50 from P8
and P10, respectively.
Separately, the Department of Finance said a
balanced budget may be unattainable this year given the lower
economic growth projection in the first quarter.
Finance Secretary Margarito B. Teves said a zero
budget gap scenario is no longer the government’s primary goal, as
a slowing economy and higher commodity prices have become more
urgent concerns.
“Our primary goal is really to ensure that we
have the resources to support the requirements of the economy. There
will be additional requirements for the food sector,” Teves said
in a telecast interview over a local TV station.
Teves also reiterated that the government may
decide to resume borrowing from the international market after
domestic interest rates rose in the past few months.
In the first four months this year, the
government’s budget deficit stood at P25.8 billion, with revenues
at P375.5 billion, and expenditures at P401.3 billion. The Bureau of
Internal Revenue surpassed its collection target by P13 billion,
while the Bureau of Customs fell short by P2.8 billion.
Despite the global volatility and high prices of
oil and rice, Teves said revenues remain on track.
“We’re not changing the targets yet. It’s
difficult to make adjustments when we’re on track,” he added.
-- With Chino S. Leyco
|
