On the expenditure side, household consumption rose 5.14 percent in the second quarter, after a 4.95 percent increase in the previous period; and government spending climbed 5.26 percent, compared with a 2.74 percent advance in Q1. Meantime, fixed-investment went up 5.87 percent, easing from a 7.95 percent jump in the March quarter. Net external demand contributed negatively to GDP growth, as exports increased by 7.70 percent (vs 6.09 percent in Q1) while imports went up at a faster 15.17 percent (vs 12.66 percent in Q1).
On the production side, output growth accelerated for: agriculture (4.76 percent vs 3.29 percent); mining and quarrying (2.21 percent vs 0.74 percent); electricity and gas (7.56 percent vs 3.31 percent); water and waste management (3.94 percent vs 3.59 percent); wholesale and retail trade (5.24 percent vs 4.93 percent); accommodation & food and beverages (5.75 percent vs 5.45 percent); business services (8.89 percent vs 8.04 percent); public administration, defense and social security (7.20 percent vs 5.79 percent); education (4.94 percent vs 4.83 percent); health and social services (7.07 percent vs 6.06 percet); and other services (9.22 percent vs 8.42 percent). In addition, output continued to grow firmly for: manufacturing (3.97 percent vs 4.56 percent); construction (5.73 percent vs 7.35 percent); transportation (8.59 percent, the same as in Q1); information and communication (6.06 percent vs 8.52 percent); financial and insurance servives (3.02 percent vs 4.33 percent); and real estate (3.11 percent vs 3.23 percent).
On a quarterly basis, the economy expanded 4.21 percent in the three months to June, also beating market expectations of 4.08 percent and recovering from a 0.42 percent contraction in the previous period. It is the first quarterly growth since the third quarter of 2017 and the fastest on record, helped by seasonal spending during the Muslim fasting month and holiday festivities.
For 2018, the government still expects the economy to grow by 5.4 percent though officials have said the latest outlook is 5.2 percent. The central bank's 2018 forecast is between 5.1-5.2 percent.