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.