The Philippine Statistics Authority (PSA) announced on Thursday, Aug. 8, that the country’s economy increased by 6.3 percent in the second quarter of the year.
The nation’s gross domestic product (GDP) recorded strong growth, outpacing the 5.8 percent expansion seen in the first quarter of 2024 and was the highest since the 6.4 percent recorded in the first quarter of 2022.
This latest GDP data brought the total average economic growth to 6.0 percent for the first half of the year, which is at the lower end of the government’s target range of 6.0 percent to 7.0 percent.
However, the GDP for April to June outperformed the 4.3 percent figure recorded in the same period last year.
In order to meet the goal target, the country’s GDP would need to grow by at least 6.0 percent every quarter for the rest of the year.
National Economic and Development Authority Secretary Arsenio M. Balisacan said that the GDP data prompted the country to remain one of Asia’s best-performing major emerging economies, with Vietnam growing by 6.9 percent, Malaysia at 5.8 percent, Indonesia at 5.0 percent, and China at 4.7 percent.
The main contributors to the second quarter of 2024 growth were construction, which grew by 16.0 percent; wholesale and retail trade; repair of motor vehicles and motorcycles by 5.8 percent; and financial and insurance activities by 8.2 percent.
Other notable contributors to growth were industry and services, which posted year-on-year growths of 7.7 percent and 6.8 percent, respectively.
Meanwhile, the agriculture, forestry, and fishing sector posted a year-on-year decline of 2.3 percent.
On the demand side, household consumption increased by 4.6 percent, while exports increased by 4.2 percent and imports grew by 5.2 percent.
Government spending also grew by 10.7 percent and gross capital formation also increased by 11.5 percent, suggesting an increase in both government investments and overall capital formation.
Balisacan said that the government will sustain the momentum and ensure that the benefits of economic growth are shared equitably.
Food expenditure, which made up most of inflation, drove the July readout to reach 4.4 percent, coupled with the impact of weather phenomena.
“The government’s medium-term game plan is to implement strategic policies and programs focused on raising agricultural productivity and improving farmers’ incomes and competitiveness through a whole-of-government approach toward strengthening our infrastructure, logistics networks, and markets for agricultural inputs and outputs,” the NEDA chief said.
Department of Budget and Management Secretary Amenah F. Pangandaman also welcomed the higher government spending as she urged all government agencies “to ensure the judicious allocation and spending of resources so that we can unlock our full potential toward lasting economic prosperity that is felt by all Filipinos.”
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The article was originally published in Manila Bulletin and written by Xander Dave Ceballos.
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