Philippines GDP Growth Strongest in 3 Years


The Philippines economy grew an annual 7.0 percent in the second quarter of 2016, accelerating from a downwardly revised 6.8 percent expansion in the previous three months and beating market consensus of a 6.7 percent growth. It was the fastest expansion since the June quarter 2013, as a faster increase in household consumption, government spending and investment offset a slowdown in exports.

In the June quarter, household consumption expanded by 7.3 percent year-on-year, as compared to a 7.0 percent increase in the first quarter. Government expenditure advanced 13.5 percent, up from a 11.8 percent growth in the previous three months. Gross domestic capital formation increased by 27.6 percent, accelerating from a 26.6 percent growth in the previous quarter, as investment  expanded for all categories: investment on durable equipment (+42.8 percent), construction (+14.1 percent), breeding stocks & orchard development (+3.9 percent) and intellectual property products (+40.0 percent). Exports grew by 6.6 percent, slower than a 7.3 percent rise in the March quarter, as sales of goods  eased (+4.1 percent from +5.2 percent). Those of  services rose 15.3 percent (from +14.1 percent). Imports increased by 20.9 percent, slightly faster than a 19.0 percent in the preceding quarter.

On the production side, the services sector advanced by 8.4 percent, compared to a 7.6 percent growth in the March quarter, supported by real estate (+9.4 percent), other services (+9.4 percent),  trade and repair of motor vehicles, motorcycles, personal and household goods (+8.9 percent), transport, storage & communication (+7.0 percent), financial intermediation (+6.6 percent) and public administration & defense; compulsory social security (+6.4 percent). The industry sector expanded 6.9 percent, following a 9.0 percent growth in the preceding quarter quarter. Construction recorded the highest increase (+11.0 percent), followed by electricity, gas and water supply (+9.8 percent) and manufacturing (+6.3 percent). In contrast, mining & quarrying shrank by 9.7 percent, following a 11.1 percent rise in the March quarter. Agriculture, hunting, forestry and fishing contracted by 2.1 percent, slower than a 4.4 percent decline in the preceding quarter.

For the first six months of 2016, the economy expanded 6.9 percent, faster than a 5.5 percent growth in the same period a year earlier.

On a quarter-on-quarter seasonally adjusted basis, the GDP advanced 1.8 percent in the June quarter of 2016, accelerating from an upwardly revised 1.3 percent expansion in the March quarter and in line with estimates.



Philippines GDP Growth Strongest in 3 Years


PSA l Rida Husna | rida@tradingeconomics.com
8/18/2016 11:48:17 AM