Philippines posts 7.5% growth in second quarter

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ManilaThe Philippines again posted a sound GDP growth in the second quarter of 2013, with the country’s economy expanding 7.5 per cent, on par with China. In the first quarter of the year, growth stood at 7.7 per cent.

The country outperformed all its Southeast Asian peers. Indonesia grew by 5.8 per cent, Thailand by 2.8 per cent, Vietnam by 5 per cent, Singapore by 3.8 per cent and Malaysia, by 4.3 per cent.

It was the fourth consecutive quarter in which the Philippine economy grew above 7 per cent. Economist in the country said they are confident that the growth momentum will be sustained for the next 3 years.

“The growth came mainly from consumer and public spending, buttressed by increased investments in fixed capital,” Jose Ramon Albert, secretary general of the National Statistical Coordination Board, said at a press conference in Manila on August 29, adding that the services sector, manufacturing and construction also pushed up growth.

However, the Philippines peso was under pressure in line with other ASEAN currencies and came down nearly 8 per cent this year. Exports and imports fell more than 4 per cent in the first half of 2013. But an average $of 1.7 billion in remittances from Overseas Filipino Workers every month, domestic demand in the country has remained solid, helping cushion the economy from slumping trade.

Higher government expenditures and spending related to the mid-year elections in May also boosted domestic consumption. This could change in the second half of the year when public spending is reduced. Economists say the third quarter output of 2013 might be slower than 7.5 per cent, but should be back to around 7.5 per cent in the fourth quarter “or even higher.”

Philippines-GDP-Aug-2013

Infographic source: http://www.perpe.es/2013/08/29/oc13213

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The Philippines again posted a sound GDP growth in the second quarter of 2013, with the country's economy expanding 7.5 per cent, on par with China. In the first quarter of the year, growth stood at 7.7 per cent. The country outperformed all its Southeast Asian peers. Indonesia grew by 5.8 per cent, Thailand by 2.8 per cent, Vietnam by 5 per cent, Singapore by 3.8 per cent and Malaysia, by 4.3 per cent. It was the fourth consecutive quarter in which the Philippine economy grew above 7 per cent. Economist in the country said they are confident that the...

Reading Time: 1 minute

ManilaThe Philippines again posted a sound GDP growth in the second quarter of 2013, with the country’s economy expanding 7.5 per cent, on par with China. In the first quarter of the year, growth stood at 7.7 per cent.

The country outperformed all its Southeast Asian peers. Indonesia grew by 5.8 per cent, Thailand by 2.8 per cent, Vietnam by 5 per cent, Singapore by 3.8 per cent and Malaysia, by 4.3 per cent.

It was the fourth consecutive quarter in which the Philippine economy grew above 7 per cent. Economist in the country said they are confident that the growth momentum will be sustained for the next 3 years.

“The growth came mainly from consumer and public spending, buttressed by increased investments in fixed capital,” Jose Ramon Albert, secretary general of the National Statistical Coordination Board, said at a press conference in Manila on August 29, adding that the services sector, manufacturing and construction also pushed up growth.

However, the Philippines peso was under pressure in line with other ASEAN currencies and came down nearly 8 per cent this year. Exports and imports fell more than 4 per cent in the first half of 2013. But an average $of 1.7 billion in remittances from Overseas Filipino Workers every month, domestic demand in the country has remained solid, helping cushion the economy from slumping trade.

Higher government expenditures and spending related to the mid-year elections in May also boosted domestic consumption. This could change in the second half of the year when public spending is reduced. Economists say the third quarter output of 2013 might be slower than 7.5 per cent, but should be back to around 7.5 per cent in the fourth quarter “or even higher.”

Philippines-GDP-Aug-2013

Infographic source: http://www.perpe.es/2013/08/29/oc13213

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