May 28, 2009, 5:28 GMT
Manila - The Philippine economy is teetering on the brink of after posting 0.4 per cent growth in the first quarter of the year amid the raging global crisis, the government said Thursday.
Romulo Virola, secretary general of the National Statistical Coordination Board, said the country's gross domestic product (GDP) growth in the first quarter was down from 3.9 per cent a year ago.
'The Philippine economy is now teetering into recession,' he said. 'Leading economic indicators for the second quarter breached into the negative territory, confirming the all too real threat of recession.'
Virola noted that the agriculture, fishery and forestry sector contracted by 1 per cent in the first quarter, while the industry sector sank by 6.6 per cent.
The country's gross national product, which included dollar remittances from millions of overseas Filipinos, grew by 4.4 per cent, slightly lower than the 6.4 per cent last year.
Virola noted that dollar remittances from abroad remained one of the few bright spots in the country's dimming economic prospects, as demand for Filipino workers continues to rise.
'Notwithstanding the difficulties faced the by global economy, the demand for the services of our overseas Filipino workers continued to heighten,' he said.
According to the central bank, dollar remittances from overseas Filipinos expanded 2.7 per cent to 4.1 billion dollars in the first quarter of the year.
Socio-economic Planning Secretary Ralph Recto admitted that the government has become less confident in achieving its 2009 growth target of between 3.1 per cent and 4.1 per cent.
Recto, however, said the economy will 'stay afloat' during the year.
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