GDP rises 6.3% in Q4, dampened by agri; full-year growth 5.8%

Posted on January 28, 2016 07:40:26 PM | BREAKING NEWS

GROSS domestic product (GDP) in the fourth quarter rose 6.3% year-on-year, the Philippine Statistics Authority (PSA) reported this morning.

The October-December outcome was higher than the previous quarter’s upwardly revised 6.1%, but was lower than the 6.6% recorded a year earlier. The result made it the strongest quarter of 2015, PSA data showed.

The fourth quarter outcome brings 2015 growth to 5.8%, slightly higher than the median forecast of 5.725% from a BusinessWorld poll of 16 economists and analysts, but well below the government’s 7%-8% target for 2015.

Pulling down GDP in the fourth quarter was the 0.3% contraction in the agriculture sector.

On the other hand, services - which contributed 46.4% of GDP last quarter - propped up growth after rising by 7.4%. The industry sector also grew by 6.8%, slower than the 9.1% recorded in the same period last year.

Household spending grew by 6.4% from 5.0% in the three months to December 2014.

Likewise, government spending improved sharply to 17.4% last quarter from 9.4% a year earlier.

Meanwhile, exports grew at a slower pace of 7.1% in the quarter from the 12.8% posted in the same period a year prior.

Gross national income, which includes income from overseas, grew by 6.2% last quarter from 5.7% in the year-earlier period. - Christine Joyce S. Castañeda