Consulate General of the Philippines in New York
News Release, 31 August 2004

RP sets expansion of trade relations

The robust growth of the country’s economy despite the ongoing crisis has spurred the government to move forward with the expansion of its foreign trade relations, starting with President Gloria Macapagal-Arroyo’s state visit to China.

Press Secretary Ignacio Bunye said in a press statement that aside from China, the President will strive to bolster in the country’s trade ties with existing markets like the United States, Japan, Asia and Europe.

"This (growth figures) is also a signal for more discipline and sacrifice, even as we continue to seize the opportunity by moving forward on more trade," Bunye said.

The country’s gross domestic product (GDP) in the second quarter of the year grew by 6.2 percent from 4.2 percent in the same period last year, according to the National Statistical Coordination Board (NSCB).

The services sector provided the major factor in the uptick, with 48.2 percent share of the GDP, as it improved its growth rate from 5.7 percent in 2003 to 7.3 this year.

Industry and agriculture, fishery and forestry also experienced growths, which contributed to the rise in GDP.

Industry, at 3.8 percent of the GDP, grew from 3.6 to 5.6 percent. Agriculture, fishery and forestry, which accounted for 18 percent of the GDP, rose from 1.6 percent to 4.3

The sustained second quarter economic growth translated to the improvement in the per capita GDP from 1.8 percent in 2003 to 3.7 in 2004.

Bunye said the President has expressed her appreciation for those who have worked hard and contributed to the robust growth of the economy. She also commended her countrymen for their enterprising spirit.

He said that despite the economic crisis, Filipinos remain resilient and hopeful of a brighter future.

"The growth reflects the firmness of our stability through the last elections and our people’s confidence in the democratic process," he said.

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