November 7, 2024 | 12:00am
MANILA, Philippines — The Philippine economy expanded at a slightly faster rate than initially reported in the second quarter, according to the Philippine Statistics Authority (PSA).
In a statement yesterday, the PSA said the gross domestic product (GDP) growth in the second quarter was revised upward to 6.4 percent from the preliminary estimate of 6.3 percent.
The PSA cited manufacturing as a major contributor to the upward revision in GDP, with the sector’s growth adjusted to 3.9 percent from 3.6 percent.
Accommodation and food service activities also contributed to the GDP’s upward revision, with the sector’s growth upgraded to 12.1 percent from 10.4 percent.
Another major contributor was real estate, with the sector’s growth raised to 7.6 percent from 7.2 percent.
The PSA said there was also an upward revision in Gross National Income in the second quarter, to 8.1 percent from 7.9 percent.
Net primary income from the rest of the world was likewise adjusted to 25.7 percent from 24.7 percent.
The PSA said GDP estimates are revised “based on an approved revision policy (PSA Board Resolution 1, Series of 2017-053), which is consistent with international standard practices on national accounts revisions.”
Data on the country’s third-quarter economic performance will be released today, Nov. 7.
Moody’s Analytics economist Sarah Tan said in an email that the Philippine economy is expected to post slower growth of 5.7 percent in the third quarter compared to the previous quarter.
“Government spending and private investment will drive growth, while private consumption will stay muted as it will take time for the recent rate cuts to filter through the economy. Meanwhile, exports could lose some of their shine due to the soft external demand for Philippine goods and a slower increase in tourist arrivals,” she said.
For Ateneo Center for Economic Research and Development director Ser Percival Peña-Reyes, the economy is forecasted to have posted 6.5 percent growth in the third quarter, driven by construction, transport and storage, as well as accommodation and food service activities.
Emmanuel Lopez, a professorial lecturer at the University of Santo Tomas Graduate School, said he also expects GDP growth for the third quarter to be at least 6.5 percent “because of the continued improvement in the price stability of basic commodities despite fluctuating petroleum prices.”
He said the Monetary Board’s reduction in the key policy rate is also signaling positive movement in investment borrowing.
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