Philippine economy grows 7.5% in second quarter

MANILA, Philippines- The Philippine economy posted a 7.5-percent growth in the second quarter, the government announced Thursday.

The growth in the period matches the 7.5-percent growth of China, placing the Philippine economy among the fastest-growing in East Asia and the fastest in Southeast Asia. In the region, Indonesia grew 5.8 percent; Vetnam, 5 percent; Malaysia, 4.3 percent; Singapore, 3.8 percent; and Thailand, 2.8 percent.

As the first-quarter gross domestic product, the sum of all goods and services produced within the country, was revised downward to 7.7 percent from the previous 7.8 percent,  the country's first half growth is 7.6 percent.

"The resilient Services sector, which grew by 7.4 percent remained the main driver of the country’s growth supported by the 10.3 percent and 17.4 percent growth of  manufacturing and construction, respectively boosting the Industry sector to grow by 10.3 percent," the NSCB said.

On the demand side, consumer and public spending and helped by increased investments in Fixed Capital also boosted the economy. Exports, however, have declined.

The country's gross national income, including the earnings of Filipinos abroad, jumped 7.3 percent.

Socioeconomic Planning Secretary Arsenio Balisacan said the growth in the second quarter beat the median forecast of 7.2 percent. The growth is also higher than the 6 percent to 7 percent target set by the Development Budget Coordination Committee this year.

"The composition of our growth shows signs of an economy that is in the process of rebalancing, moving from being largely consumption-driven to becoming investment-led and industrialized, with the ability to provide higher quality jobs for Filipinos. For the past three quarters, capital formation has been growing more rapidly than household consumption and the growth of industry has so far outpaced that of the services sector," Balisacan added.

Finance Secretary Cesar Purisima, meanwhile, said the second-quarter growth showed that the economy is "moving strength to strength."

“Going forward, we will strive to sustain our economic strengths by continuing to increase fiscal space to further accelerate infrastructure investments. We will also push for key reforms to improve the investment environment and continue the fight against corruption, revenue leakages, and vested interests that prevent the Philippines from reaching its full potential," Purisima said.