The domestic economy has likely grown by 0.6 to 1.6% in the fourth quarter of 2009 from the previous year, according to acting National Economic and Development Authority (NEDA) chief Augusto Santos.

Santos, in a news conference in Malacañang, said the NEDA figure could have brought growth for the entire 2009 to 0.7 to 1.0 percent, wherein the low end of the range is slightly below the government’s target. The government earlier projected 0.8% to 1.8% growth target for 2009.

Santos said a weaker agriculture sector hit by typhoons late last year has somehow derailed economic growth in the last quarter of 2009.

“We are affected a little by the great impact that was made on the performance in the fourth quarter by two sectors, one is agriculture resulting from the natural disasters that hit the country and the second is the performance of manufacturing, which is hit badly by the global recession," Santos said.

Santos disclosed the NEDA forecasts for 2009, a few days before the economic team is expected to present the official economic figures.

For 2010, Santos said the goverment plans to sustain stimulus spending as it anticipates the local economy to grow between 2.6 percent to 3.6 percent. "But the economic managers have to meet when we get the actual performance figures this coming Thursday," he said.

During the meeting called by the President, Santos also recommended that the government should continue to spur the development of electronics and business process outsourcing industries this year.

He said the group of BPO companies has predicated the Philippines could capture at least 10 percent of the global market for outsourcing this year.

"We feel the government wherever it can assist the private sector in being able to capture this 10 percent of the global market outsourcing for 2010," he added.