The Philippine Statistics Authority (PSA) announced a downward revision to the rate of economic growth for the fourth quarter of 2014 on Wednesday, a day before the release of official growth data for the first quarter of 2015.
The agency said in a statement the rate of growth in gross domestic product (GDP) in the last three months of last year was revised downward to 6.6 percent from the previously reported 6.9 percent.
Private economists have predicted the government would announce a slowdown in first-quarter GDP growth from the unrevised fourth-quarter rate of 6.9 percent.
Overestimation of trade, utilities
The revised fourth-quarter GDP rate reflects cuts in growth previously reported for trade; other services; electricity, gas, and water supply, the PSA said.
It said the revision does not affect the overall economic growth previously announced for full-year 2014, which remained intact at 6.1 percent.
“The preliminary GDP estimates for the fourth quarter were released with a shorter time lag of thirty days and based on limited data that were available as of January 2015,” it said in the statement.
The agency also reduced the net primary income for the last quarter of 2014 to 1.4 percent from 2.8 percent.
“Net primary income was revised downward from 7.3 percent to 4.1 percent resulting in the downward revision of gross national income from 6.3 percent to 5.8 percent,” it said.
“This resulted in the downward revision of the GNI [gross national income]from 6.3 percent to 5.7 percent” the PSA said.
In a note explaining the changes, the PSA said the revision of the GDP estimates is in accordance with a revision policy approved by the former NSCB Executive Board, which is consistent with international standard practices on national accounts revisions.
The official GDP figure for the first quarter of 2015 is set to be released today, Thursday, with estimates by economists from private banks and the International Monetary Fund ranging from 6 percent to 7.3 percent.
The government projects growth of 7 percent to 8 percent for this year.