PHL GDP eases to 6%, below gov’t target band and estimates

By Carmina Angelica V. Olano, Researcher
The Philippine economy grew 6.0% in the second quarter of 2018, the Philippine Statistics Authority (PSA) reported Thursday morning.
The April-June gross domestic product (GDP) growth figure was lower than the revised 6.6% growth recorded in the same period in 2017 and the 6.8% median estimate in a BusinessWorld poll last week.
This brings growth in the first half to 6.3%, which is also below the government’s 7-8% target band for 2018.
The services led growth among major sectors at 6.6%, faster than the 6.4% recorded in the same period last year. Meanwhile, the industry sector posted a 6.3% growth, slower than the 7.1% in 2017.
Agriculture also grew albeit marginally at 0.2% versus the 6.3% growth posted a year ago.
On the expenditure side, household spending was up 5.6% during the period compared to the 6.0% growth in the second quarter of 2017.
Exports of goods and services grew by 13.0%, slower than 2017’s 21.4%. Meanwhile, imports grew 19.7% from 18.6%.
On the other hand, government spending picked up steam during the quarter, growing by 11.9% from 7.6% in the same period last year. Capital formation, which is a measure of private investment, was likewise up by 20.7% from 7.6%.
Gross national income—the sum of the nation’s GDP and net income received from overseas—recorded a growth of 5.8% in the second quarter of 2018, down from 6.6% previously.