The country's services sector is expected to grow between 4.3 percent to 5.2 percent next year from 3.3 percent to 4.3 percent in 2010, inter-agency Development Budget Coordination Committee's (DBCC) data showed.

The inter-agency body tasked to set the country's macroeconomic targets expected that the services sector, which accounts for more than half of the Philippines' gross domestic product (GDP), will recover further in 2010.

“The sector is seen to accelerate further with the faster growth in its sub-sectors, including the ownership of dwelling and real estate as businesses in the offshoring and outsourcing industry reconsider expansion plans,” the government said.

A stronger growth is seen by the DBCC next year as the global economy fully recovers. Initial projections put the country's real GDP growth at 3.8 percent to 4.7 percent.

From 0.9 percent growth in 2009, the GDP growth is expected to reach 2.6 percent to 3.6 percent this year with the improving global economic prospects and strong foreign remittance inflows.

The share of the services sector to total GDP in the Philippines has increased steadily in the past several years. The strong performers in the services sector were finance and private services.