Philippines: GDP expands at solid pace in Q4
January 31, 2013
In the fourth quarter, GDP expanded 6.8% over the same period the year before. The reading came in below the 7.2% increase observed in the third quarter (previously reported: +7.1% year-on-year) but exceeded market expectations of a 6.3% expansion. Solid economic growth in the last quarter of 2012 was mostly underpinned by private consumption and fixed investment. In the full year 2012, the economy expanded 6.6%, which was well above the 3.9% growth rate registered in 2011.
Private consumption accelerated from a 6.3% increase in the third quarter to a 6.9% rise in the fourth, while government consumption rose 9.1% (Q3 2012: +12.0% yoy). Meanwhile, fixed investment expanded 10.6% in the fourth quarter (Q3: +9.0% yoy).
Exports of goods and services accelerated from a 6.7% increase in the third quarter to a 9.1% expansion in the fourth. Simultaneously, imports grew 4.6% (Q3: +4.9% yoy). As a result, the external sector's net contribution to overall economic growth improved from plus 0.9 percentage points in the third quarter to plus 2.3 percentage points in the fourth.