The Philippine economy emerged from recession in the second quarter of this year, registering an 11.8-percent growth in the gross domestic product (GDP) for the period.
The reported GDP figure by the Philippine Statistics Authority (PSA) on Tuesday compares with the 3.9 percent and 17 percent contraction a quarter and a year earlier.
However, the result in April-June was significantly below the official government growth objective of 6 percent to 7 percent for the year.
“The robust performance is driven by more than just base effects. It is the result of a better balance between addressing Covid-19 (coronavirus disease 2019) and the need to restore jobs and incomes of the people,” the government’s economic managers, nevertheless, stressed in a joint statement.
On the production side, they reported that all sectors grew except agriculture. Industry expanded by 20.8 percent, while services grew by 9.6 percent.
Total investment inched up by 75.5 percent on the spending side. The construction industry improved at a rate of 25.7 percent.
Household spending growth has also turned positive, according to the economic managers, at 7.2 percent. Furthermore, foreign trade recovered significantly, with imports and exports jumping by 37.8 percent and 27 percent, respectively.
They went on to say that only government spending fell by -4.9 percent, owing to a strong base effect from the second-quarter 2020 rollout of the largest-ever emergency assistance.
In conclusion, despite the application of the enhanced community quarantine (ECQ) and modified ECQ last April and May 2021, practically all sectors recovered, the economic managers underscored.
They added, “This is a clear indication that managing risks, instead of shutting down large segments of the economy, stands a far better chance of improving both economic and health outcomes.”
The economic managers said prospects for a substantial economic rebound in 2021 are still bright.
“Although there are speed bumps given the current ECQ in Metro Manila and other parts of the country, we are now better equipped to sustain continuous positive growth.”
BY MEYNARD DELA CERNA