Philippines Economy Rebounded Sharply in Second Quarter
By Kosaku Narioka | Market Watch | August 9, 2021 10:25 pm
The Philippine economy expanded in the second quarter from a year earlier at the sharpest pace in more than three decades, thanks to a recovery in the services and industry sectors and a low base.
Gross domestic product rose 11.8% following a 3.9% drop in the January-March period, data from the Philippine Statistics Authority showed Tuesday. The growth rate was the highest since the fourth quarter of 1988.
The outcome beat the median forecast for a 10.9% expansion in a Wall Street Journal poll of economists.
In the second quarter of 2020, GDP fell 17.0% from a year earlier as the economy was hit hard by the pandemic. Recent rises in Covid-19 cases and tightened containment measures may cloud the economic outlook, economists said.
Compared with the previous quarter, GDP fell 1.3% in the second quarter on a seasonally adjusted basis.
Service sector output, which includes trade of goods and typically makes up more than half of the economy, rose 9.6% from a year earlier.
The industry sector, including manufacturing and construction, expanded 20.8%, while the agriculture sector shrank 0.1%, the data showed.
Bangko Sentral ng Pilipinas, the country’s central bank, maintained its benchmark overnight borrowing rate at a record low of 2.00% in June to support the economy.
Source: Market Watch