Philippines: GDP growth loses steam in Q1
May 30, 2014
GDP expanded 5.7% in Q1 over the same period last year. The reading came in below both the 6.3% rise recorded in Q4 and market expectations of a 6.4% expansion. Furthermore, the reading marked the lowest reading since Q4 2011.
The overall deceleration was driven by a slowdown in domestic demand. Total consumption fell slightly, with private consumption slowing from a 5.9% expansion over the previous year in Q4 to 5.8% growth in Q1. However, government consumption expanded 2.0% over the previous year in Q1, which contrasted the 0.4% contraction seen in Q4. Fixed investment growth tallied an 11.2% increase (Q4: +8.0% year-on-year).
In the external sector, exports of goods and services expanded a strong 12.6% over the previous year in Q1, which was above the 3.2% increase observed in the fourth quarter. Imports picked up to an 8.0% increase (Q4: +6.4% yoy). As a result, the external sector’s net contribution to overall economic growth rose from minus 1.0 percentage points in the fourth quarter to plus 2.3 percentage points in the first.