Philippines: Economic growth speeds up in Q2
August 27, 2015
GDP expanded 5.6% in Q2 over the same period of the previous year. The reading came in above the subdued 5.0% rise recorded in Q1, which had marked the slowest pace of growth since Q4 2011, and was in line with market expectations.
Q2’s acceleration was mainly driven by strengthening consumption, which more than compensated for a deteriorating external sector. Total consumption rose, with private consumption picking up from Q1’s 6.0% expansion to a 6.2% rise in Q2. Government consumption picked up notably from Q1’s 1.7% expansion to a 3.9% increase in Q2. By contrast, fixed investment growth decelerated from 10.0% in Q1 to 8.9% in Q2.
In the external sector, exports of goods and services in Q2 expanded a subdued 3.7% over the previous year, which was down from the 6.4% increase observed in Q1 and marked the lowest gain since Q4 2013. Imports accelerated markedly to a 12.7% increase (Q1: +8.7% year-on-year). As a result, the external sector’s net contribution to overall economic growth deteriorated, falling from minus 1.0 percentage points in Q1 to minus 4.5 percentage points in Q2.