DOF expects stronger GDP performance in Q2

The country’s economy likely grew at a much faster pace in the secondquarter of the year amid improved exports, robust public spending and the recovery of the agriculture sector, the Department of Finance (DOF) said.

Finance Undersecretary and Chief Economist Gil S. Beltran said the country’s Gross Domestic Product (GDP) may have expanded by about 7.0 percent to 7.2 percent in April to June this year, higher compared with the 6.4 percent growth in the previous quarter.

Data from the Philippine Statistics Authority (PSA) showed that GDP grew by 7.0 percent in the same months last year.

“The second-quarter GDP will be better than first-quarter… will be a lot better because exports for the first half is 13.6 percent up, last year it was negative 3.5 percent,” Beltran noted, adding that government expenditures also rose 8.8 percent last quarter.

Aside from exports and public spending, Beltran said the agriculture output was also strong at least 5.0 percent.

The Department of Agriculture reported yesterday that farm output, accounting for about a tenth of GDP, increased by 6.18 percent in the second-quarter, outpacing growth in the first quarter, as good weather helped boost crop harvests, including rice and corn.

The Philippines Statistics Authority is scheduled to release the country’s GDP data on Thursday.

Earlier, Socioeconomic Planning Secretary Ernesto M. Pernia said he was upbeat that the country’s economy would surpass its first-quarter growth as exports and the agriculture sectors have started to improve.

Pernia said that GDP may “approach 7.0 percent” during the April to June period.

“I think it would pick up… Secondquarter will be higher than the firstquarter. If you look at leading indicators, the exports [and] agriculture are improving. I think it will approach seven percent [but not exactly seven percent] — it’s better to be conservative,” Pernia told reporters.

The recovery of the global economy is also providing a boost to the country’s economic growth, the NEDA chief said.

Pernia also noted that the unrest in Mindanao, particularly in the city of Marawi, would not affect the overall economic performance, saying it is “a small fraction of the country in terms of population and economy.”

In June, the Development Budget Coordination Committee (DBCC) kept its GDP target at 6.5 percent to 7.5 percent this year, and 7.0 percent to 8.0 percent starting next year until 2022.