Philippines GDP


Philippines: Economic growth recovers in Q2

August 29, 2014

GDP expanded 6.4% in Q2 over the same period last year. The reading came in above both the 5.6% rise recorded in Q1 and market expectations of a 6.1% expansion. Furthermore, the reading marked the highest growth rate since Q3 2013.

Q2’s acceleration was mainly driven by an improvement in the external sector. Total consumption decelerated slightly, with private consumption slowing from Q1’s 5.9% quarterly expansion to 5.3% growth in Q2. Government consumption recorded a flat reading over the previous year in Q2, which came in below Q1’s 1.9% expansion. Fixed investment growth tallied a 4.0% increase (Q1: +11.0% year-on-year).

In the external sector, exports of goods and services expanded a healthy 10.3% over the previous year in Q2, which was down from the 13.5% increase observed in the first quarter. Imports slowed markedly to a 1.4% increase (Q1: +10.1% yoy). As a result, the external sector’s net contribution to overall economic growth rose from plus 1.8 percentage points in the first quarter to plus 3.9 percentage points in the second.

The government expects growth of between 6.5% and 7.5% in 2014. FocusEconomics Consensus Forecast panelists expect economic growth to reach 6.3% in 2014, which is unchanged from last month’s forecast. For 2015 panelists expect growth to hold steady at 6.5%.

Author: Teresa Kersting, Economist

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Philippines GDP Chart

Philippines GDP Q2 2014

Note: Year-on-year changes of GDP in %.
Source: National Statistical Coordination Board (NSCB) and FocusEconomics Consensus Forecast.

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