Bad weather also cut farm output growth by more than half while weak global demand for electronics almost flattened export gains. Consumer spending, which accounts for 73 per cent of the economy, rose by only 4.9 per cent last year compared with 5.8 per cent in 2004, according to the governments National Statistical Coordination Board. Investments fell by 3 per cent after growing by 4.2 per cent the year before, as companies delayed or cancelled expansion or new projects amid opposition attempts to unseat Mrs Macapagal over alleged corruption and poll cheating. Exports, another key driver of economic growth, were up by a mere 2.3 per cent compared with 14.1 per cent in 2004 because of weak demand in the US and other countries for semiconductor devices, which account for 68 per cent of Philippine overseas sales. A prolonged drought especially in the early part of the year also pushed down agricultural output growth to only 2 per cent from 4.9 per cent in 2004. But government economists said the economy was recovering towards the end of the year. GDP grew by 6.1 per cent in the last three months of the year after rising by an average of 4.6 per cent in the first three quarters of 2005. Beating analysts forecasts of only 5 per cent, fourth-quarter economic growth got a boost from higher consumer spending and stronger farm, industrial and services activity. “The economy is not just resilient but also tough, as tough as Manny Pacquiao,” said Dennis Arroyo, a senior government economist, referring to the Filipino boxer who was welcomed home as a national hero this week after knocking out a Mexican rival in Las Vegas. Mr Arroyo said the government expects GDP to grow by 5.7-6.3 per cent this year, buoyed by a recovery in US demand for semiconductors as well as higher mineral ore exports. Government economic planners said investors have put in about $340m in 24 new or expanded mining projects as of the end of 2005, boosting the sectors output by a quarter in the fourth quarter. Augusto Santos, the governments economic planning chief, added that higher state spending for public work projects will further boost economic growth this year. After years of minimal increases in the infrastructures budget, the government will raise spending for roads, bridges and other civil works this year by 28 per cent, the biggest increase in a decade. PIN/FT