Philippine economy loses steam in Q1
MANILA: The Philippine economy grew at its slowest pace in more than a year in the first quarter, but resilient exports and strong consumer spending was likely to keep momentum buoyant this year.
The pace was the weakest for the Southeast Asian economy since the last quarter of 2015, but the government said the economy was “broadly in line” to grow within its target of 6.5-7.5 per cent for the year.
Gross domestic product grew 6.4 per cent in January-March from a year earlier, government data showed yesterday, below market expectations.
The Philippine Statistics Authority revised growth in October-December 2015 to 6.3 per cent from 6.7 per cent.
Economists had forecast the economy to expand 6.8 per cent from a year earlier compared with 6.6 per cent in the last three months of last year.
“The Philippines remains one of the strongest performers among major emerging economies in Asia,” said Economic Planning secretary Ernesto Pernia, adding that the first quarter’s pace was only second to China’s 6.9 per cent clip. India has not released first-quarter data.
The economy grew a seasonally adjusted 1.1 per cent from the previous three months, less than the 1.5 per cent forecast in a poll and the slowest in eight quarters.
To sustain the economy’s growth momentum and ensure its effects are more broadly felt, President Rodrigo Duterte has promised to spend US$180 billion (RM774 billion) over six years to build and modernise railways, airports, seaports and roads, a vital sector for the economy. Reuters