Philippines GDP Growth Slowest In A Year in Q4

The Philippines economy grew an annual 6.6 percent in the December quarter of 2016, following a downwardly revised 7.0 percent expansion in the previous two quarters but slightly above market consensus of a 6.5 percent growth. It was the weakest expansion since the fourth quarter 2015, as private consumption and investment slowed while government spending and exports rose further.
PSA l Rida Husna | rida@tradingeconomics.com 1/26/2017 5:57:59 AM
In the three months to December, household consumption expanded 6.3 percent year-on-year, compared to a 7.1 percent increase in the second quarter. Government expenditure advanced 4.0 percent, faster than a 3.1 percent growth in the September quarter, as some programs under the new administration of President Rodrigo Duterte, who began a six-year term at the end of June 2016, were already completed.

Gross domestic capital formation increased by 15.0 percent, slowing from a 18.6 percent growth in the previous quarter but marking the seven straight quarters of double-digit growth. Investment in construction grew by 9.5 percent, followed by durable equipment (3.7 percent), breeding stocks & orchard development:(3.7 percent) and intellectual property products (28.7 percent).

Exports increased by 10.4 percent, faster than a 8.8 percent rise in the third quarter. While sales of goods rose 9.6 percent (from 7.8 percent in the third quarter), those of  services went up 13.6 percent (from +14.2 percent). Imports increased by 15.0 percent, following a 13.6 percent in the preceding quarter.

On the production side, the services sector advanced 7.4 6.9 percent, compared to a 6.8 percent growth in the three months to September quarter and accounted for 46.7 percent of the total economy. Growth in the sector was supported by public administration & defense; compulsory social security (12.1 percent), real estate (9.0 percent), trade and repair of motor vehicles, motorcycles, personal and household goods (6.9 percent), other services (6.5 percent), transport, storage & communication (6.3 percent) and financial intermediation (6.0 percent). The industry sector expanded 7.6 percent, following a 8.4 percent growth in the preceding quarter. Construction recorded the highest increase (11.0 percent), followed by electricity, gas and water supply (8.9 percent) and manufacturing (6.9 percent). In contrast, mining & quarrying shrank by 0.5 percent, following a 2.6 percent fall in the September quarter.  Agriculture, hunting, forestry and fishing declined by 1.1 percent, following a 2.9 percent growth in the previous period. 

For full 2016, the economy grew by 6.8 percent, faster than a 5.9 percent expansion in 2015.

For 2017, the economy is expected to advance between 6.5 to 7.5 percent.

On a quarter-on-quarter seasonally adjusted basis, the GDP advanced 1.7 percent in the fourth quarter 2016, compared to an upwardly revised 1.5 percent growth in the September quarter while market estimated a 1.6 percent growth.

Philippines GDP Growth Slowest In A Year in Q4