Philippine economic growth eased in the second quarter, but at a slower than expected pace, as spending and exports underpinned activity.
Gross domestic product rose 5.9 percent annually, down from the revised 6.3 percent expansion in the first quarter, data from the National Statistical Coordination Board showed Thursday. Economists had forecast the annual growth to ease to 5.5 percent.
The statistical agency said the resilient services sector remained the main driver of growth, while the sustained growth of the manufacturing sector and the rebound by the construction sector supplemented growth.
On the demand side, growth came from positive contribution by all the expenditure items, except for changes in inventories. Consumer spending and the improved growth of external trade primarily contributed to growth.
Household spending and government expenditure gained 5.7 percent and 5.9 percent, respectively. Investment moved up 2.3 percent from a year ago. Exports rose 8.3 percent, while imports grew only 4.4 percent.
On a seasonally adjusted basis, GDP growth decelerated to 0.2 percent from the first quarter. The growth rate was also smaller than the consensus forecast of 1.1 percent.
All the three sub-sectors were weak in the second quarter. Agriculture, hunting, forestry and fishery sector posted 1.2 percent growth in the second quarter compared to the 2.7 percent growth in the first quarter. The growth of the services sector slowed to 1.5 percent from 2.6 percent in the previous quarter.
Meanwhile, industry output declined by 2.4 percent from a 3.8 percent gain in the previous quarter.
During the first half of the year, the economy expanded 6.1 percent, marginally better than the government's target of 5-6 percent.
In a report released in July, the International Monetary Fund said Philippines' economic growth is expected to stabilize at around 4.8 percent this year.
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