The Philippine economy grew at the faster-than-expected rate of 6.4 per cent in the first quarter, boosted by increased government spending, dpa cited officials as saying Thursday. The growth of gross domestic product in the January-March period was up from a revised 4-per cent expansion in the fourth quarter of 2011. Socio-Economic Planning Secretary Arsenio Balisacan said accelerated government spending for major infrastructure projects pushed growth in public construction to 62.2 per cent, helping propel the economy. The government announced a 72-billion-peso (1.67-billion-dollar) stimulus package late last year to shield the economy from the impact of Europe's debt woes, and much of the money was released only starting January. Lower inflation, a revitalized services sector and a 7.1-per-cent growth in exports also contributed to the first quarter performance, Balisacan said. Remittances rose 5.4 per cent to 4.84 billion dollars in the first three months of 2012, boosting the growth in gross national product to 5.8 per cent. Due to the strong start, Balisacan said the government expects that its full-year growth target of 5 to 6 per cent "is well within reach, or may even exceed it." "At the same time, the government will not let up in its efforts to accelerate the growth of the economy," he said. "For example, there is still considerable room for faster acceleration in government spending." "Also, the government will remain vigilant on the risks to growth, including those posed by the euro area woes and the uncertainties in the world price of oil," he said.
