On the production side, the first quarter GDP growth was mainly driven by the services sector which grew 6.8 percent year-on-year. All subsectors, led by real estate, renting and business activities and financial intermediation spurred to the robustness of the sector. Industrial production advanced 5.5 percent and agriculture grew a meager 0.9 percent, led by palay, sugarcane and poultry production.
On the expenditure side, household consumption rose 5.8 percent year-on-year, marginally lower than a revised 5.9 percent growth rate in the previous quarter. Government expenditure increased 2 percent, following last quarter’s 0.4 percent contraction. Gross fixed capital formation grew at a slower 7.7 percent yoy after a 22.4 percent surge in the previous three months, as private investment in construction fell 6 percent.
Exports surged 12.6 percent yoy, up from a 3.2 percent increase in the previous quarter, mainly supported by a 14.2 percent rise in shipment of goods. Sales of electronic components, accounting for nearly 48 percent of total merchandise exports increased 11.5 percent. Imports grew at a faster 8 percent, driven by a 25.3 percent increase in purchases of services.
On a quarter-on-quarter seasonally adjusted basis, the Philippines GDP rose 1.2 percent in Q1, down from a revised 1.7 percent expansion in the previous three-month period.