Q4 2018 GDP revised upward to 6.3%
MANILA, Philippines — The Philippine Statistics Authority on Thursday upwardly revised the Philippines’ fourth quarter 2018 gross domestic product growth, although the full-year figure still missed the government’s target.
GDP growth in the final three months of 2018 was at 6.3%, higher than 6.1% that the government initially reported.
Despite the revisions, the PSA said economic growth for the entire 2018 was still at 6.2%, below the state’s 6.5-6.9% goal for the year and the weakest in three years.
“Relatedly, Gross National Income and Net Primary Income had upward revisions from 5.2 percent to 5.7 percent and from 0.9 percent to 2.7 percent, respectively,” the country’s statistics agency said.
“The PSA revises the GDP estimates based on an approved revision policy which is consistent with international standard practices on national accounts revisions,” it added.
In a bid to fight capital outflow and keep inflation in check, the Bangko Sentral ng Pilipinas lifted its policy rate by a cumulative 175 basis points last year. High inflation and surging borrowing costs sapped consumer spending, which has traditionally been the driving force behind growth in the Philippines.
Socioeconomic Planning Secretary Ernesto Pernia early this year said the government expects household consumption to recover as inflationary pressures subside, adding that policymakers remain vigilant of inflation risks.
But Pernia flagged global headwinds that may dampen the domestic economy, including the US-China trade war and rising interest rates.
Last month, state economic managers slashed their 2019 GDP growth forecast to 6-7% from 7-8% originally as the government operates on a reenacted budget and catch up with spending. — Ian Nicolas Cigaral
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