The latest Gross Domestic Product (GDP) figure has shown a 7% growth in Q2 2016. As announced by Socioeconomic Planning Secretary Ernesto Pernia during a Press Conference for the 2016 Q2 Performance of the Philippine Economy, “The 7-percent growth in the second quarter of 2016 is an upbeat start for the current administration.”
This strong growth increases the probability of our attaining the revised full-year 2016 DBCC-approved real growth projection of 6 to 7 percent.” Pernia said.
The Philippines seems to remain to be the fastest growing economy in the second quarter of 2016, followed by China which grew by 6.7%. Following are Vietnam by 5.6%, Indonesia by 5.2 %, Malaysia by 4.0%, and Thailand by 3.5%.
The economy in the 2nd quarter of 2016 shows that demand has a stronger performance with investments having the highest contribution of 5.7 percentage points to GDP growth. Public spending remains a strong point while private consumption has grown stronger compared to the previous quarter and year.
The performance of the agriculture sector remains at -2.1 percent likely due to the effects of El Nino. There is also a developing risk of La Nina that will possibly intensify between August and October this year.
“Moving forward, despite the good numbers for the first six months of 2016, there is still a risk of seeing a lower growth rate in the second half of the year. This is a normal occurrence during election years. Consumer sentiment will also likely normalize given the post-election season.’ said Pernia. Source: NEDA http://www.neda.gov.ph