Economy’s growth highest since ’75

THE economy expanded by 7.3 percent last year, the fastest pace and highest in over three decades, the government said yesterday. Romulo Virola, secretary general of the National Statistical Coordination Board (NSCB), said despite the El Niño and the diminished government spending during the second semester, the domestic economy, as measured by gross domestic product (GDP), "sizzled to its highest annual GDP growth in the post Marcos era of 7.3 percent in 2010 from 1.1 percent in 2009." The 2010 GDP growth was the highest since 1975 at 8.8 percent and surpassed the government's target of between five percent and six percent. Virola attributed last year's strong GDP growth to the global economic recovery, higher foreign trade, election related spending and the peaceful national elections. In 2010, Virola said industry once again took the driver's seat in boosting the economy with its huge 12.1-percent growth from a decline of 0.9 percent the previous year.

Services provided more than able support as it grew by 7.1 percent from 2.8 percent. However, agriculture, hounded by El Niño, posted a negative 0.5 percent from zero growth in 2009. In the fourth quarter alone, the GDP grew 7.1 percent from 2.1 percent in the same period in 2009. Virola said the growth during the last quarter of 2010 came from services, with 3.3 percentage points; industry, 2.7 percentage point and agriculture, fishery and forestry (AFF), one percentage point. read more