The Philippine Statistics Authority (PSA) revised upward the first-quarter gross domestic product (GDP) growth to 5.8 percent from the preliminary estimate of 5.7 percent.
It said the major contributors to the upward revision were financial and insurance activities, with growth revised from 10.0 percent to 10.3 percent; wholesale and retail trade; repair of motor vehicles and motorcycles, from 6.4 percent to 6.6 percent; and electricity, steam, water and waste management, from 6.3 percent to 6.9 percent.
The PSA said it also raised the gross national income (GNI) growth to 9.8 percent from 9.7 percent. This followed the adjustment in the growth of net primary income from the rest of the world from 57.0 percent to 57.6 percent.
The PSA said it revises the GDP estimates based on an approved revision policy (PSA Board Resolution No. 1, Series of 2017-053), consistent with international standard practices on national accounts revisions.
It announced the revision ahead of the release of the second-quarter GDP report on Thursday.
Economic managers earlier projected that the GDP would grow 6 percent in the second quarter on the back of strong consumer and government spending. The government targets a 6 percent to 7 percent growth for 2024.
The Philippine economy likely grew 6.3 percent in the second quarter, according to Moody’s Analytics,
Moody’s said the second-quarter growth was driven by base effects, stronger exports and government spending.
“In the Philippines, we expect economic growth to accelerate to 6.3 percent year-on-year from [5.8 percent] in the March quarter. The result will be flattered by a low base effect,” Moody’s Analytics said.
“A year earlier, growth slowed substantially to 4.3 percent, and in quarter-on-quarter terms, GDP went backwards. This time, robust goods exports and government spending should drive growth,” Moody’s Analytics said.
The PSA said the agriculture and fisheries sector, which accounts for about a tenth of the GDP in the Philippines, contracted 3.3 percent year-on-year in the second quarter of 2024.
