Philippines: Economic growth picks up in Q4
January 29, 2015
GDP expanded 6.9% in Q4 over the same period of the previous year. The reading came in notably above the 5.3% rise recorded in Q3 and market expectations of a 6.0% expansion. In addition, the reading marked the fastest growth rate since Q3 2013.
Q4’s acceleration was mainly driven by a better performance of the external sector. Total consumption accelerated, with private consumption inching up from Q3’s 5.0% expansion to a 5.1% rise in Q4. Government consumption rebounded strongly from Q3’s 2.6% contraction to a 9.8% increase in Q4. However, fixed investment slowed to an 8.1% expansion in Q4 (Q3: +10.5% year-on-year).
In the external sector, exports of goods and services in Q4 expanded a significant 15.5% over the previous year, which was up from the 9.9% increase observed in the third quarter. Imports accelerated slightly to a 5.3% increase (Q3: +5.1% yoy). As a result, the external sector’s net contribution to overall economic growth improved markedly from 2.7 percentage points in the third quarter to 4.7 percentage points in the fourth.