Q1 GDP revised downward to 6.6%

MANILA, Philippines — Philippine economic growth in the first quarter of 2018 has been revised downward to 6.6. percent from 6.8 percent, the Philippine Statistics Authority (PSA) said.

Major contributors to the downward revision were services, manufacturing, and agriculture and forestry.

The PSA said it revised the gross domestic product (GDP) estimates based on an approved revision policy consistent with international standard practices on national accounts revisions.

The National Economic and Development Authority (NEDA) earlier said growth in the first quarter of the year could have been faster were it not for the spike in inflation, which dampened consumption and productivity in several sectors.

Socioeconomic Planning Secretary Ernesto Pernia said while the inflationary pressures are transitory effects of the new tax reform law and are expected to ease by year-end, immediate solutions need to be implemented to stem the undesirable effects on the economy.

These include the passage of the law to liberalize rice trade in the country, minimizing lags in the implementation of  unconditional cash transfer to the poorest 50 percent of households, and the immediate implementation of the Pantawid-Pasada subsidy for jeepney drivers.

Meanwhile, the second quarter economic growth figures will be announced by the PSA today.