Philippines GDP Growth Accelerates in Q2


The Philippines economy expanded 5.6 percent in the second quarter of 2015, accelerating from a downwardly revised 5.0 percent growth in the previous three months and matching market consensus. An increase in consumption and invesment offset a slowdown in exports.

On the expenditure side, household consumption grew by 6.2 percent year-on-year, following a 6.0 percent increase in the first quarter 2015. Government expenditure expanded by 3.9 percent, accelerating from a 1.7 percent expansion in the  preceding quarter, mainly due to  a sustained growth in maintenance and other operating expenses.
 
Gross domestic capital formation increased by 17.4 percent, after registering a 11.6 percent growth in the previous quarter, as construction expanded by 13.1 percent year-on-year, durable equipment grew by 6.6 percent and breeding stocks & orchard development rose by 0.8 percent.
 
Exports expanded by 3.7 percent, slowing from a 6.4 percent growth in the preceding quarter, as sales of goods decline while those of services increased. Outward shipments of goods significantly declined for: principal agricultural products (-44.5 percent), principal fishery products (-32.7 percent), articles of apparel and clothing accessories (-14.2 percent), basketworks (-26.9 percent), cathodes & sections of cathodes, of refined copper (-40.0 percent) and others (-27.1 percent). Growth in exports of services were mainly contributed by miscellaneous sectors (+42.6 percent) and government (+6.8 percent).
 
Imports increased by 12.7 percent, accelerating from a 8.7 percent rise in the March quarter, mainly driven by higher purchases of services (+26.3 percent) while those of goods slightly declined (+9.5 percent). Among services, miscellaneous services rose the most by 73.3 percent, followed by insurance (+15.6 percent), transportation (+10.0 percent) and government (+7.0 percent). Among goods, purchases of electronics increased the most by 53.6 percent, followed by cereals (+41.6 percent), feedstuff (+25.4 percent), machinery and mechanical appliances (+24.9 percent), paper products (+19.1 percent), electrical machinery (+11.0 percent), chemical products (+9.1 percent), medical and pharmaceutical products (+8.2 percent) and textile yarns (+7.5 percent).
 
On the production side, the services sector advanced 5.6 percent year-on-year, accelerating from a 5.4 percent growth in the previous quarter. Growth in the sector were contributed by: transportation, storage and communication (+8.6 percent from +8.3 percent in the previous quarter);  trade and repair of motor vehicles, motorcycles, personal and household goods (+5.4 percent from +5.5 percent); real estate, renting & business activity (+6.4 percent from +6.3 percent) financial intermediation (+ 4.3 percent from +4.3 percent); public administration & defense compulsory social security (+0.2 percent from - 3.5 percent) and other services (+5.8 percent from +6.6 percent).
 
The industry sector grew by 5.5  percent, the same as in the preceding quarter. Mining & quarrying grew by 7.1 percent (after a 3.1 percent decline in the first quarter). Construction expanded by 4.5 percent (from +5.4 percent); manufacturing (+5.9 percent from +6.0 percent); electricity, gas and water supply (+4.1 percent from +5.1 percent).
 
The agriculture, hunting, forestry and fishing (AHFF) expanded by 1.6 percent, accelerating from a 1.1 percent growth in the March quarter. The top contributors to the growth in the agriculture were: cassava (+9.2 percent), poultry (+5.4 percent), agricultural activities & services (+5.1 percent), other crops (+5.0 percent), corn (+4.0 percent), banana (+4.0 percent), livestock (+3.2 percent), pineapple (+1.7 percent) and palay (+1.4 percent).
 
On a quarter-on-quarter seasonally adjusted basis, the GDP advanced 1.8 percent in the second quarter of 2015, outperforming a revised 0.4 percent expansion in the March quarter, as a rebound in the industry sector and an expansion in the services sector offset a alower decline in the agriculture sector.

Philippines GDP Growth Accelerates in Q2


PSA l Rida Husna l rida@tradingeconomics.com
8/27/2015 10:47:21 AM