 The government wants to maintain growth to tackle poverty |
The Philippines economy grew at its fastest rate in five years in the first quarter of 2004, as farming output and consumer spending rose, officials said. The rise in GDP - up a seasonally adjusted 2.2% from the fourth quarter - led the government to retain a forecast of 5.8% growth for the year.
This is despite high oil prices, which will hit a country where almost all of its energy requirements are imported.
Officials warned high oil costs could mean inflation reaches 5% in 2004.
Beating forecasts
President Gloria Arroyo described the data as "the silver lining" amid the squabbles which have delayed announcement of the 10 May presidential election results, which she is expected to have won.
"The first quarter surprised us pleasantly," economic planning secretary Romulo Neri told correspondents.
"At the moment, we are just hoping to hit our target... given the oil price increases that may put a little more pressure on growth in the second quarter."
Economists had previously predicted growth of up to 5.5%.
"In the context of the Philippines, over 6% growth is strong," said Song Seng Wun, economist at GK Goh Securities in Singapore.
"But whether this is sustainable is debatable."
The Philippines has not recovered from the regional economic crisis as quickly as other Asian countries due to a budget deficit of nearly 5% of GDP and widespread corruption which has put off foreign investors.
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