August 27, 2015

GDP growth for 1Q15 revised down to 5.0% from 5.2%

The Philippines’ real GDP growth for 1Q15 was revised down to 5.0% from the 5.2% estimate released in May. The Philippine Statistic Authority (PSA), in a statement, said the revision were due to downward adjustments in public administration and defense (from 0.2% growth to a contraction of 3.5%); mining and quarrying (from 7.1% to negative 3.1%); and agriculture, hunting, forestry and fishing (from 1.6% to 1.1%).

GDP estimates on the expenditure side have also been revised, with the revised numbers showing stronger growth in household consumption than initially predicted. A more stable indicator, household consumption was revised upward to 6.0% from 5.4%, registering the fastest growth in the last four quarters (5.7% in 2Q14, 4.9% in 3Q14 and 5% in 4Q14). This sector contributed 4.1 pps towards the overall growth rate, higher than the 3.7 pps contribution reported in May.

The gains, however, were offset by weaker government spending with growth revised lower at 1.7% from 4.8% initially. Meanwhile, Net Primary Income (NPI) was also revised downward to 0.8% from 2.7% resulting in the downward revision of Gross National Income (GNI) to 4.2% from 4.7% previously. The 1Q15 revision comes ahead of the release of the 2Q15 GDP growth estimates later this morning.