Q2 GDP growth revised upward to 7.5%

MANILA, Philippines — The Philippine Statistics Authority (PSA) said the economy grew at a slightly faster pace in the second quarter than initially reported.

According to the PSA, the second quarter gross domestic product (GDP) growth for this year was revised to 7.5 percent, slightly higher than the preliminary estimate of 7.4 percent rcorded last August.

Among the major contributors to the upward revision of the second quarter GDP was construction, with its growth revised to 19.5 percent from 19 percent.

Also contributing to the GDP growth revision was real estate and ownership of dwellings, with its growth adjusted to 4.4 percent from 3.9 percent.

Another major contributor to the GDP growth revision was manufacturing, as its growth was revised to 2.2 percent from 2.1 percent.

Nicholas Mapa, senior economist at ING Bank in Manila, said in an e-mail the revision came from the better than expected performance of manufacturing, construction, and real estate amid the reopening of the economy.

“Economic reopening means pent up projects are now coming onstream after several months in lockdown,” he said.

He said stimulus rolled out since 2020 continues to provide solid foundation for growth this year.

According to the PSA, the growth rate of net primary income (NPI) from the rest of the world also had an upward revision to 65.3 percent from 64.8 percent.

While the GDP and NPI were revised upward, the PSA said the growth rate of gross national income, which covers the GDP and NPI from overseas in the second quarter of this year, was maintained at 9.3 percent.

The PSA said the adjustments to the GDP estimates are done “based on an approved revision policy, which is consistent with international standard practices on national accounts revisions.”

The PSA is set to report the country’s third quarter economic performance today (Nov.10).

Most economists polled by The STAR expect the country to post slower GDP growth in the third quarter compared to the second quarter and the third quarter last year, with high inflation likely to have dampened consumption.

For this year, the government has set a 6.5 to 7.5 percent GDP growth target.

For the country to hit the lower end of the growth target, the economy will need to grow 5.3 percent in the second half of the year.