Q1 GDP growth downgraded to 6.8%

MANILA, Philippines – The Philippine Statistics Authority (PSA) has revised downwards the gross domestic product (GDP) growth rate for the first quarter of the year due to revisions in the performance of trade, other services, public administration and defense.

PSA revised to 6.8 percent the GDP growth for the first three months from the 6.9 percent earlier released.

“The PSA revises the GDP estimates based on a revision policy approved by the former NSCB Executive Board, which is consistent with international standard practices on national accounts revisions,” said the state statistics agency.

Even with the revision, the country still outpaced growth in several Asian countries in the first quarter of the year.

The Philippines was the fastest-growing economy during the period among 11 selected Asian economies. The country outpaced China, whose economy grew 6.7 percent; Vietnam, 5.5 percent; Indonesia, 4.9 percent and Malaysia, 4.2 percent.

Growth during the period was driven mainly by the services and industry sectors. 

The industry sector was supported by manufacturing, construction and utilities.

Services, meanwhile, was supported by trade, finance, real estate, renting and business activities.

Former socioeconomic planning secretary Emmanuel Esguerra said while the economy continues to traverse a high growth trajectory because of gains the country’s main economic drivers, the agriculture sector continues to be a poor performer.

Esguerra also noted that business expectations remain optimistic in the second quarter.

He said strong domestic demand is expected to support economic growth within the near term, offsetting the possible downward pressure coming from weak global output.

Manufacturing, said Esguerra, is seen to retain its momentum because of the country’s strong consumer base, upbeat consumer sentiment and improving employment opportunities.

The second quarter GDP growth rate would be announced in Davao today, the outlook for which is expected to be faster than the first quarter.

Incumbent Socioeconomic Planning Secretary Ernesto Pernia said this is because of election-related spending, as well as stronger investor and public confidence brought about by the change in leadership.