Mfg sector contributing more to GDP

MANILA, Philippines — The Philippine manufacturing sector continued to grow in the third quarter, expanding by 9.4 percent and inching closer to its gross domestic product (GDP) contribution target.

In a statement, Trade Secretary Ramon Lopez said the surge in manufacturing drove GDP growth to a better-than-expected 6.9 percent, with the sector accounting for a 22.4 percent contribution.

“We are closing in on our minimum target of growing the manufacturing industry to 25 percent of the country’s GDP,” Lopez said.

“The Department of Trade and Industry remains relentless in our efforts to revive our factories, expand production, generate employment, and enable industry to provide the catalyst that will build the seamless link between a productive agriculture and a strong services sector,” he added.

The GDP growth was one of the fastest in the region, outpa-cing other Asian countries such as China (6.8 percent), Malaysia (5.8 percent), and Singapore (4.6 percent).

The services sector accounted for the highest share to GDP at 58.9 percent, followed by the industry sector (33.3 percent), and agriculture sector (7.5 percent). Manufacturing accounted for 69 percent of the total output of industry.

Among the three economic sectors, industry accelerated the fastest at 7.5 percent, while the services  and agriculture sectors grew 7.1 percent and 2.5 percent, respectively.

“This economic feat is creating meaningful and well-paying jobs for our people and providing a compelling environment for business to thrive. This is what the Department’s Trabaho at Negosyo thrust is all about,” Lopez said.

The DTI reported that food remained the main contributor with 23.6 percent of total gross value added (GVA) in manufacturing, followed by the manufacture of radio, television and communication equipment and apparatus with 18.6 percent, and chemical and chemical products with 15.9 percent. 

Fabricated metal products posted the fastest growth at 66.8 percent, followed by furniture and fixture (32.3 percent), and office, accounting and computing machinery (25.5 percent). 

Meanwhile, the GVA of retail trade sector recorded a 6.9 percent increase. It was followed by wholesale trade (6.3 percent), and maintenance and repair of motor vehicles, motorcycles, personal and household goods (5.5 percent).