EconomyEditor's PickSecond-quarter GDP revised upward to 7.5%

November 9, 2022
Customers eat at a restaurant in Quezon City, March 1. — PHILIPPINE STAR/ MICHAEL VARCAS

THE PHILIPPINE ECONOMY grew slightly faster than initially reported in the second quarter, the Philippine Statistics Authority (PSA) said on Wednesday.

The PSA said in a statement the gross domestic product (GDP) growth rate for the April-to-June period was revised upward to 7.5% from 7.4% previously reported.

The second-quarter GDP expansion was slower than 12.1% a year earlier and 8.2% in the first quarter, as elevated inflation weighed on consumer spending.

The net primary income (NPI) from the rest of the world was also higher at 65.3% from 64.8% initially reported.

Meanwhile, the gross national income — the sum of the nation’s GDP and net primary income from the rest of the world — for the second quarter remained at 9.3%.

The PSA attributed the upward revision to the second-quarter GDP growth to the slightly higher growth of the construction sector to 19.5%, versus the earlier estimate of 19%.

Real estate and ownership of dwellings also expanded by 4.4% in the second quarter, faster than the 3.9% previously reported.

The manufacturing sector’s growth was upwardly revised to 2.2% in the April-to-June period, from 2.1% previously estimated.

Other sectors also contributed to the higher GDP growth in the sector — transportation and storage (27.4% from 27.1% previously reported), accommodation and food service activities (30.8% from 29.9%), professional and business services (7.8% from 7.7%), education (5.5% from 5.3%), and other services (40% from 39.5%).

The industry sector rose slightly higher to 6.4% versus the previous estimate of 6.3%.

Meanwhile, the growth of the services and agriculture, forestry, and fishing sectors was unchanged at 9.1% and 0.2%, respectively.

The PSA noted downward revisions in the growth of several sub-sectors: electricity, steam, water, and waste (5.1% from 5.4%); information and communication (10.6% from 10.7%); financial and insurance activities (3.7% from 4.2%); human health and social work activities (1.7% from 1.8%). 

Expansion of the wholesale and retail trade and public administration defense were unchanged at 9.7% and 9.1%, respectively.

The mining and quarrying contracted 6.6%, smaller than the 7.3% initially reported.

The PSA also upwardly revised the growth in imports of goods and services and exports to 13.8% (from 13.6%) and 4.4% (from 4.3%), respectively.

Growth in government spending and household expenditure, meanwhile, remained unchanged at 11.1% and 8.6%, respectively.

Gross capital formation, the investment component of the economy, expanded faster at 21.%, slightly higher than the 20.5% initially reported.

National account revisions are based on approved revision policy, which is consistent with international standard practices, the PSA said.

Third-quarter GDP data will be released today (Nov. 10).

The Philippine economy likely grew by 6.1% in the July-September period from a year ago, according to the median forecast of 16 analysts in a BusinessWorld poll last week.

If realized, this would be slower than the 7.5% revised GDP growth in the second quarter and 7% seen in the same period last year.

The government is targeting a 6.5-7.5% full-year growth this year. — Mariedel Irish U. Catilogo

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