In the first quarter, GDP expanded 4.9% over the same period the year before. The reading came in below the 6.1% increase observed in the fourth quarter (previously reported: +7.1% year-on-year) and market expectations that had seen GDP growing at a faster rate of 5.1%. The slower pace of economic growth was partially associated with a base effect from Q1 2010, when government spending boosted GDP growth to 8.4%. Furthermore, this was also the first time when the national accounts were calculated using a new data series rebased to constant 2000 prices. As a consequence of the change in methodology, the full-year economic growth for 2010 was revised upwards to 7.6% from the previously estimated 7.3%. According to the Philippine National Statistical Coordination Board (NSCB), the weaker growth in Q1 mainly reflected government underspending as well as weak performance of the external sector. Government consumption declined a whopping 17.2% in the first quarter, down from a 6.6% contraction registered in the fourth quarter. Private consumption growth remained unchanged from the fourth quarter and added 4.9% in the first. Investment decelerated from growth of 16.1% in the fourth quarter to a 12.0% increase in the first quarter. Exports of goods and services decelerated to 3.3% (Q4: +16.8% yoy), while imports grew at a slower 8.8% pace (Q4: +21.9% yoy). As a result, the net contribution of the external sector to overall economic growth remained negative although improved slightly from minus 3.1 percentage points in the fourth quarter to minus 2.6 percentage points in the first. At the sector level, the quarterly reading was driven by growth of 7.2% in the industrial sector (Q4: +6.5% yoy) as well as in services, which added 3.7% (Q4: +6.4% yoy). The agricultural sector remained broadly stable, increasing 4.2% in the first quarter (Q4: +4.1% yoy). The government expects growth to remain within the 7.0 - 8.0% target for 2011.
Economic growth slows in the first quarter
May 30, 2011
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Philippines Economic News
October 17, 2016
In August, cash remittances from Overseas Filipino Workers (OFW) grew 16.3% from the same month of last year to USD 2.3 billion.
October 13, 2016
The Philippines’ exports declined for the seventeenth consecutive month in August mainly due to weak demand from Japan, Hong Kong and the USA. Exports dropped an annual 4.4%, which followed July’s sharper 13.0% decrease.
October 6, 2016
In September, consumer prices rose 0.2% from the previous month, marginally up from August’s 0.1% increase.
September 22, 2016
At its meeting on 22 September, the Central Bank decided to leave the Overnight Reverse Repurchase facility (RRP) unchanged at 3.00% as the markets had expected.
September 15, 2016
In July, cash remittances from Overseas Filipino Workers (OFW) dropped 5.4% over the same month last year to USD 2.1 billion.