No change in Q1 growth despite sectoral revisions

MANILA, Philippines — The 5.6 percent growth rate in the first quarter of the year was maintained despite revisions in the performance indexes of several economic sectors, the Philippine Statistics Authority (PSA) said yesterday.

Growth in the services sector was revised downward to 6.8 percent from the previous estimate of seven percent.

In the agriculture sector, growth was also revised downward to 0.7 percent from the previous estimate of 0.8 percent. 

Growth in the industry sector, on the other hand, was revised upward to 4.8 percent from  4.4 percent.

Net Primary Income (NPI) from the rest of the world and gross national income (GNI) had corresponding upward revisions from 1.9 percent to 3.2 percent and from 4.9 percent to 5.2 percent respectively.

The PSA revises the GDP estimates based on an approved revision policy consistent with international standard practices on national accounts revisions.

The domestic economy grew at a slower-than-expected pace in the first quarter of 2019 as the delay in the passage of the national budget stalled government spending for infrastructure and priority programs during the period.

This was the weakest pace of growth in 16 quarters, or since hitting 5.1 percent in the first quarter of 2015, and compares with the 6.5 percent growth in the first quarter of 2018 and the revised 6.3 percent growth in the fourth quarter of 2018.

Growth in government consumption weakened significantly to 7.4 percent in the first quarter of 2019 compared with the growth of 13.6 percent in the first quarter of 2018 and 12.6 percent in the fourth quarter of 2018.

Public construction slowed down by 8.6 percent because of delays in the construction of public infrastructure and implementation of several programs.

Passage of the budget was delayed after lawmakers locked horns over alleged last-minute insertions in the general appropriations bill. 

After the enactment of the budget, the government announced a plan to catch up on spending in the remaining months of the year.

Nonetheless, banks, think tanks and investment houses have trimmed their growth forecasts for the country this year.