The Philippine economy expanded more than expected in the fourth quarter, supported by widespread growth in household consumption, public spending, exports and investment, data published by the National Statistical Coordination Board showed Thursday.
The gross domestic product grew 6.8 percent year-on-year in the fourth quarter compared to forecast for a 6.3 percent rise. This was, however, weaker than the third quarter's 7.2 percent increase.
The GDP rose 6.6 percent in 2012, accelerating from a 3.9 percent gain in the previous year.
Year-on-year, household consumption grew at a faster pace of 6.9 percent, while government spending surged 9.1 percent, although at a slower pace than in the third quarter. Growth in investment accelerated to 10.6 percent in the third quarter from 9 percent in the previous quarter.
Exports grew 9.1 percent annually in the fourth quarter, faster than a 6.7 percent gain in the previous three-month period. Imports grew 4.6 percent.
In 2012 as a whole, exports grew 8.7 percent, rebounding from previous year's 4.2 percent decline. Growth in imports accelerated to 4.2 percent from 0.2 percent in 2011.
On the production side, the improvement was fueled by the robust performance of the services sector led by trade and real estate, renting and business activities as well as the substantial improvements in manufacturing and construction, the statistical office said.
The seasonally adjusted GDP rose 1.5 percent compared to the previous quarter.
World Bank forecasts a GDP growth of 6.2 percent for the economy this year. The International Monetary Fund expects growth to moderate to around 6 percent in 2013 and then to 5.5 percent next year.
Standard and Poor's last month raised the country's credit rating outlook to positive. S&P rates the sovereign at BB+, just one notch below investment grade. Moody's also upgraded Philippines' rating in October, taking it closer to investment grade.
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