PSA keeps Q2 GDP growth at 5.5%

MANILA, Philippines — The Philippine Statistics Authority (PSA) kept the gross domestic product (GDP) growth rate at 5.5 percent in the second quarter, but made upward adjustments in some sectors.

In a statement, the PSA said that while no adjustments were made to the second quarter growth figure, revisions were seen in six sectors.

In particular, those with upward adjustments are: wholesale and retail trade, repair of motor vehicles and motorcycles (5.3 percent from 5.1 percent), transportation and storage (8.8 percent from 8.3 percent) and mining and quarrying (-1.3 percent from -2.9 percent).

On the other hand, downward revisions were seen in the following: manufacturing (2.5 percent from 2.7 percent), financial and insurance activities (5.4 percent from 5.6 percent) and real estate and ownership of dwellings (5.9 percent from 6.1 percent).
The PSA said that the gross national income in the second quarter was revised downward to eight percent from 8.2 percent.

Net primary income from the rest of the world also saw a downward adjustment to 30.3 percent from 32.8 percent.

The PSA revises the GDP estimates based on its approved revision policy,PSA Board Resolution 1, Series of 2017-053.

It said this “is consistent with international standard practices on national accounts revisions.”

Data on third quarter economic performance will be released today.

Earlier this week, Department of Economy, Planning and Development Secretary Arsenio Balisacan said that he is not as optimistic as he used to be about the third quarter GDP growth amid domestic and external challenges.

In particular, he cited the flood control controversy, which may have affected government spending, construction and fixed capital formation.

He said a slowdown is also expected in the industry and services sectors as typhoons disrupted work and school activities.

The United States’ trade policies also likely affected growth performance.

As of the first semester, the economy posted an average growth of 5.4 percent, below the government’s 5.5 to 6.5 percent target for the year.