DAVAO CITY – The Philippines’ gross domestic product (GDP) grew 7 percent in the second quarter of 2016, which makes the country the “fastest if not the second fastest” growing economy in Asia.
In a press conference yesterday, National Economic Development Authority (NEDA) director Ernesto Pernia said the second quarter GDP is higher as compared to 5.9 percent in the same period of last year.
He said this is an upbeat start for the Duterte administration.
“Among the major emerging economies, Asian economies, the Philippines likely remains the fastest or second fastest, at least among the growing economy in the second quarter of 2016, followed by China which grew at 6.7 percent, Vietnam at 5.6 percent, Indonesia at 5.2 percent, Malaysia 5 percent, and Thailand at 3.5 percent,” he said.
He said second quarter growth is well within the market expectation of 6.1 percent to 7.2 percent.
This growth is driven by industry sector which posted a 6.9 percent growth from 6.1 percent of the same period last and the services sector, which expanded to 8.4 percent growth from 6.7 percent of the same in 2015, according to Pernia.
The services sector contributed the biggest to the GDP with 4.6 percentage points, industry sector 2.3 percentage points, and agriculture a -0.2 percentage point.
Pernia noted that this growth increases the country’s probability of attaining the revised 2016 Development Budget Coordinating Committee approved real projection of 6 to 7 percent.
He also cited the economic gains of the previous Aquino administration that built a strong and stable economy, noting a 6.8 percent growth during the first quarter of the year, before the transition into a new administration.