MANILA, Philippines — The Philippine economy grew by 6.4 percent in the second quarter, making the country the second fastest growing economy in the Asian region after China, according to the National Economic Development Authority (Neda) Thursday (Aug. 28)
The second quarter growth was higher than the 5.3 percent growth posted during first quarter of 2014.
“I am pleased to report to you that economic growth accelerated to 6.4 percent in the second quarter of 2014. This higher growth rate, coming from a high base a year ago shows that the economy is back on the higher trajectory of growth registered in 2012 and 2013 and bodes well for economic growth for the rest of 2014,” said Socioeconomic Planning Secretary Arsenio Balisacan in a statement.
Balisacan said the Philippines remained as “one of the bright spots in the region” and is “the second fastest growing economy among major Asian countries for the period.”
NEDA said the country tied with Malaysia’s performance and even topped other major ASEAN countries such as Indonesia, which has 5.1 percent, and Thailand with 0.3 percent.
NEDA said that on the demand side, net exports contributed 4.2 percentage points and household consumption contributed 3.6 percentage points.
“This profile is in line with a more positive global economy, favorable business sentiment, and robust inflows of overseas Filipinos remittances,” Balisacan said.
On the supply-side, most sectors demonstrated strong growth, except for the construction sector, NEDA revealed.
Agriculture grew by 3.6 percent, a rebound from 0.2 percent contraction in the second quarter last year, which was due to the big turnaround in major crop harvests. Industry grew by 7.8 percent, partly moderated by the weak performance of the construction industry. Although private construction increased by 12.7 percent during the second quarter compared to last year, public construction reversed last year’s strong growth and recorded a significant reduction in the second quarter.
Meanwhile, the services sector expanded by 6 percent, mainly due to trade, real estate, renting and business activities, and transport, storage & communication. This was in response to the increased demand for business process management and the expansion of economic activities.
Balisacan said that he is confident the Philippines would still achieve the full year growth target of 6.5 percent to 7.5 percent.