MANILA, Philippines — Philippine economy grew at a pace of 6.6 percent in the fourth quarter of 2016, bringing the full-year growth of 6.8 percent, the government announced Thursday.
Socioeconomic Planning Secretary Ernesto Pernia said that the 6.6-percent growth in the last quarter of 2016 is a testament that the country's economy remains robust and grows at a steady rate.
"Economic growth from the first to the last quarter of 2016 has been very encouraging, with an average full-year growth of 6.8 percent," Pernia said in a televised press briefing.
The 2016 fourth quarter growth is lower than the 7-percent growth in the third quarter but it is higher than the 6.3 percent growth during the fourth quarter of 2015.
The full-year growth recorded is along the high-end of the government's target of 6 to 7 percent growth for 2016.
"This also brings the seven-year moving average of real [growth domestic product] growth rate to 6.3 percent—the highest since 1978," Pernia said.
According to Pernia, the Philippnes is likely either the third or fourth fastest-growing major emerging economy in the fourth quarter of 2016, next to China's 6.8 percent and Vietnam's 6.7 percent.
The Philippines could be the second fastest growing economy for the full year of 2016, with China growing at 6.7 percent, the secretary added.
Net primary income slowed down by 4.1 percent while gross national income posted a growth of 6.1 percent, according to the Philippine Statistics Authority.
The fourth quarter GDP was driven by the industry sector which accelerated by 7.6 percent and the services sector which grew by 7.4 percent. The services sector had the highest contribution with 4.1 percentage points followed by the industry sector with 2.6 percent points.
The agriculture sector, however, declined by 1.1 percent, pulling down the growth by 0.1 percentage point.
Pernia noted that domestic demand fueled the growth of the fourth quarter GDP.
Intellectual property products posted the highest growth at 28.7 percent followed by durable equipment at 26.2 percent, imports of goods at 18.6 percent and exports of services at 13.6 percent.
"Overall, given this growth in 2016, we believe that the target of 6.5 percent to 7.5 percent for 2017 is highly likely," Pernia said.
The government is expecting the growth to strengthen further towards 7 to 8 percent this year.
"This would mean that, over the next six years, the economy will expand by about 50 percent in real terms and per capita income will rise by over 40 percent," the secretary added.
This would bring the country to upper middle income standing by 2022, Pernia said.
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