MANILA, Philippines --The Philippine economy grew by a surprising 7.3% in the first quarter of 2010, and Malacañang was quick to claim that it was the economy's fastest pace in almost three years. 

But not a few questioned the figures.

Former Budget Secretary Benjamin Diokno said the numbers may all be for show, and the high growth was mainly due to the low base caused by the effect of the global recession.

Think-tank Ibon Foundation expressed puzzlement over the figure, citing continued underdevelopment in the country tempered by persistent unprecedented high unemployment and poor quality work. (full article on http://info.ibon.org/)

Malacañang hit back at critics, telling them to take up the issue with the agencies tasked to project Gross Domestic Product (GDP) and Gross National Product (GNP) figures.

Speaking on government-run dzRB radio, deputy presidential spokesman Gary Olivar questioned the objectivity of former Diokno and IBON Foundation in contesting the GDP statistics.

"Itong data lumabas, 7.3% year-on-year first quarter ng GDP, 9.5% ng GNP, ito galing sa National Statistics Office at National Statistics Coordination Board (NSCB) na may professional statisticians. Sila ang kastiguhin ninyo, huwag ang Palasyo," Olivar said.

In defense of statistics office

Amid the reactions, UP School of Economics Prof. Solita Monsod defended the NSCB.

"If Malacañang had any influence at all on NSCB, I think the NSCB secretary-general (Romulo Virola) would quit." Monsod said.

"I have great confidence in national income statisticians. They're doing a good job. They seem to be quite transparent about their accounting and methodology. They are a professional set, they realize their shortcomings, they're very open about it, but there is absolutely no indication that there is padding of that data."

Citing NSCB's figures in an interview on ANC's Dateline Philippines on Sunday, Monsod said the growth was on the production side, and it was largely in the industrial sector.

Considering it did not come from the agriculture sector, and how it compared to the country's Asian neighbors, the figure was not exactly commendable, said Monsod.

"All other countries in the region posted higher growth than expected. The Philippines' growth is not as high as the rest," Monsod said, citing Thailand's economy grew 12%.

"When the economy grew by 7.3%, unfortunately agriculture contracted. We question why we grew by 7.3%, we should question why we grew so low," she added.

Monsod said the situation on the ground may be a better point of reference than government's economic figures. She said that last year, the Arroyo government posted higher growth than previous administrations, but it also saw an increase in poverty.

Fiscal constraints

Today, fiscal constraints continue to weigh down the country's economy, said Monsod.

"Most analysts have said, one of the reasons why we are not growing as fast as other countries like Indonesia and Vietnam, is because there are very serious constraints on our growth, and one of these is the fiscal constraint. We don't have the resources and the infrastructure, which is very poor compared to the rest of Asia," she said.

Agriculture sector is key

Monsod said reaping gains in agriculture would be a good way to really boost the national economy. She also urged the incoming administration to look at the indicators of growth to make sure the figures trickle down to majority of Filipinos.

"Instead of fighting if these figures are accurate or not, can we please concentrate on the agriculture sector? What can we do to help this government, to help people in agriculture who experienced contraction in sectoral growth," Monsod said.

The agricultural sector suffers from low productivity, low economies-of-scale, and insufficient infrastructure. It employs more than one-third of the work force, but provides less than a fifth of GDP.