Economy likely grew 7% in Q2 – Pernia

MANILA, Philippines -  The economy likely grew close to seven percent in the second quarter due to the improving performance of the farm and exports sector, Socioeconomic Planning Secretary Ernesto Pernia said.

“I think (gross domestic product growth) will be better (than the first quarter)...I think it will approach seven percent,” Pernia told reporters on the sidelines of the Development Budget Coordination Committee (DBCC) press briefing on Friday.

The country’s economic growth, as measured by the GDP, eased to 6.4 percent in the first quarter due to slower public spending.

Pernia said economic expansion during the second quarter would be driven by agriculture and exports.

According to data from the Philippine Statistics Authority (PSA), exports in April rose 12.1 percent to $4.81 billion from the $4.28 billion posted in the same month last year.

Pernia said East Asia and Europe remained the top destinations of Philippine products during the period.

Meanwhile, Agriculture Secretary Emmanuel Pinol earlier said he expects sustained agricultural production growth in the second quarter, banking on favorable weather conditions during the period.

The farm sector grew 5.28 percent in the first quarter, according PSA data.

Pernia also said GDP growth expectations in the second quarter are in line with the global economic recovery. 

“EU (European Union) is doing better than expected, also Japan. China is slowing, India is a potential export market,” Pernia said.

Meanwhile, Pernia also remained optimistic that the recent incidents in Marawi City and Resorts World Manila in Pasay City would not have any adverse effect on the economy.

“These are very short-lived, ephemeral, passing incidents. It’s not something thats really going to have an impact (on tourism), Pernia said.