Philippine GDP grew 7 percent in second quarter
The Philippine economy grew 7 percent in the second quarter compared to 5.9 percent a year ago, owing mainly to the services and industry sectors, the National Economic and Development Authority (NEDA) said on Thursday.
In a nationally televised press conference in Davao City, NEDA Director General Ernesto Pernia said second quarter growth, which could still be attributed to the Aquino administration, was "an upbeat start" for the administration of President Rodrigo Duterte, who assumed the post on June 30.
He said the figure is within market expectations given an average forecast by economists of 6.1 to 7.2 percent.
For April to June, the services sector expanded by 8.4 percent and industry by 6.9 percent, higher than previous growth rates of 6.7 percent and 6.1 percent respectively, the Philippine Statistics Authority (PSA) said.
Agriculture further fell by 2.1 percent from a decline of 0.1 percent last year due to the lingering effects of the El Nino weather phenomenon, said Pernia.
Percia also warned of "a developing risk of La Nina," which may intensify between August and October this year.
Pernia said the agriculture department is preparing an action plan that identifies the most vulnerable municipalities, focusing on appropriate intervention, preparedness, response, immediate recovery and rehabilitation.
Pernia said there is still a risk of seeing lower growth in the second half. “This is a normal occurrence during election years…What is important is that government continues the smooth transition of power and commits to its agenda of maintaining a consistent macroeconomic policy so that business and consumer confidence will remain strong,” he said. Pernia expressed optimism the government would achieve the revised full-year growth projection of 6 to 7 percent by the Development Budget Coordinating Committee. Celerina Monte/DMS
