Growth rate 5.0%, instead of 5.2% – PSA
Growth in Philippine gross domestic product (GDP) in the first quarter of this year was slower than previously reported, according to revised official figures showing a 5.0 percent rise, instead of 5.2 percent.
A final review of the numbers showed an overestimation of growth in three sectors namely, public administration and defense; mining and quarrying; and agriculture, hunting, forestry and fishing, the Philippine Statistics Authority (PSA) said in a statement on Wednesday.
The agency also cut the figure for net primary income to 0.8 percent from 2.7 percent.
“This contributed a negative 0.35 percentage point to the downward revision of gross national income from 4.7 percent to 4.2 percent,” it said.
The PSA added that the changes were made in accordance with a revision policy approved by the former NSCB (National Statistics Coordination Board) Executive Board, which is consistent with international standard practices on national accounts revisions.
Q2 GDP seen better on higher spending
Second-quarter GDP data is due for release today, Thursday, for which estimates by economists range from 5.6 percent to 6.8 percent. That compares with the government’s target growth of between 7 percent and 8 percent for the entire 2015.
Based on initial data for public spending for the quarter, the International Monetary Fund and private bank economists expect accelerated GDP growth during the period.
The IMF representative to the Philippines Shanaka Jayanath Peiris has told reporters the IMF would expect the economy to have picked up slightly in the second quarter from the first-quarter level on the back of an improvement in government spending disbursements and a bottoming out of the export decline, although manufacturing activity remained weak and may have dragged down growth. (See story on B1 of the Aug 24 issue)