Philippines GDP Growth Slows in Q1

The Philippine economy grew an annual 5.7 percent in the first quarter of 2014, slower than a revised 6.3 percent increase in the previous three months. It is the slowest expansion in over two years, as the impact of last year's typhoon still weights on farm output.

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.

Philippines GDP Growth Slows in Q1

National Statistical Coordination Board | Joana Taborda |
5/29/2014 11:09:21 AM