THINGS ARE GETTING BETTER

MANILA -- Strong consumer spending combined with robust farm production pushed the Philippines' gross domestic product growth last year to 7.3 percent - its fastest pace in 31 years, officials said Thursday.

The growth surpassed expectations and the 5.4 percent expansion registered the previous year, and was the fastest since the economy grew 8.8 percent in 1976.

Economic Planning Secretary Augusto Santos told reporters the GDP growth target for 2008 of 6.3-7.0 percent remain unchanged for now, but may have to be adjusted depending on economic developments in the US - the Philippines' largest trading partner and a major source of investments.

GDP in the fourth quarter rose 7.4 percent on year and 1.8 percent from the third quarter, the National Statistical Coordination Board reported. A Dow Jones Newswires' poll had projected fourth quarter growth at 6.5 percent, and 2007 growth at 6.94 percent.

The services sector, which accounts for half of the domestic economy, rose 9.0 percent on year in the fourth quarter, and 8.7 percent in 2007.

Agriculture was up 5.8 percent in the fourth quarter, and 5.1 percent in 2007. Over the same periods, industry, which includes exports and construction, rose 5.8 percent and 6.6 percent, respectively.

Gross national product rose 6.5 percent on year in the fourth quarter, and 7.8 percent on year for the whole of 2007, due to remittances from Filipinos working abroad.

The government also revised third quarter economic growth, raising the GDP expansion to 7.4 percent on year from the initial estimate of 6.6 percent, and GNP to 8.8 percent on year from 8.2 percent.
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