The Philippine economy, boosted by soaring industrial output, has recorded its fastest growth rate in five years.

Economic output was 4.5% higher in the April to June period than a year before, the country's National Economic Development Authority said.

And it was 2.3% higher than in the three months before, representing the best quarterly growth rate since 1997.

"The Philippine economy turned in a pleasant surprise by growing at a rate that exceeded even Neda projections," Socio-economic Planning Secretary Dante Canlas said.

Export boost

The rise, which compared with official forecasts of 3.9% growth, was credited largely to a strong performance by Philippine industry.

Industrial output, buoyed by strong exports, grew by 4.3% year-on-year, compared with a rate of 1.3% recorded in the January to March quarter.

The performance helped offset a decline to 2.4% in agricultural growth, from 4.6% the quarter before.

Service sector output edged up half a percentage point to 5.5%.

Regional champion

Friday's data placed the Philippines among Asia's best performing countries.

The economies of Malaysia, Singapore and Taiwan all expanded about 4% over ht period, with Indonesia posting 3.5% growth.

But analysts questioned whether the Philippine economy could maintain its growth rate, and the data failed to cheer investors, with the main Manila stock market index closing up only 0.2% on Thursday.

Economists are particularly concerned about the impact of the slower than expected recovery in the US, the Philippines' biggest trading partner, and the recurrence of the El Nino weather pattern.

"We do not think the economy can sustain this pace of growth," said Song Seng Wun, an economist with GK Goh Securities in Singapore.

It is feared that El Nino could bring a drought in the last three months of the year.

The government, however, has maintained a prediction of growth hitting 4.0-4.5% for the full year.