Phl economy likely grew by 4.5%-5.5% in Q2 - Paderanga

MANILA, Philippines - The Philippine economy likely grew 4.5 percent to 5.5 percent in the second quarter of the year, Socioeconomic Planning Secretary Cayetano Paderanga Jr. said yesterday.

In the first quarter of the year, the economy grew by 4.9 percent, according to data from the National Statistical Coordination Board (NSCB).

According to available data, the growth of the economy in the second quarter of the year has been buoyed by stronger farm output but at the same time dampened by the lackluster performance in the industry and services sectors during the period.

“Based on available data, the economic growth as measured by GDP or the value of goods and services produced within the country, may have reached between 4.5-5.5 percent in the second quarter of 2011,” Paderanga said.

The Socioeconomic Planning chief said the agriculture sector grew stronger because of the end of El Niño effects.

“The increase in crop production due to the recovery from the El Niño effects last year contributed to the strong growth in agriculture, hunting, fisheries and forestry. But it could have been dampened by the adverse weather conditions during the period,” Paderanga said.

On the other hand, he explained that other sectors such as industry and services were affected by external developments.

“The industry sector had been adversely affected by the external developments which dampened trade by the adverse effects of external developments on the manufacturing sector and the expected continued contraction in public construction,” Paderanga said.

For the services sector, Paderanga said growth in the services sector may have been pulled down by contraction in vehicle sales during the period.

“The transportation sector was also affected by high oil prices. The second quarter growth was attained despite the external shocks from natural disasters in Japan, the slow recovery of the US, the debt crisis in some of the countries in the Euro zone, the social unrest in the Middle East and North Africa or the MENA region, and higher oil prices,” he said.

The NSCB and the National Economic and Development Authority (NEDA) are scheduled to release the second quarter national income accounts on Aug. 31.

For the whole year, the government has set a GDP target of five percent to six percent, above the 7.6 percent GDP growth recorded last year.