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Economy grew by 7.5% in 2nd quarter

PH still one of Asia’s best performers during the period, data show

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The Philippines may beat the government’s own growth target for the year as official data released this week showed that the economy continued to be one of the fastest growing in Asia.

The Philippine economy, measured in terms of gross domestic product (GDP), grew by 7.5 percent in the second quarter from a year ago on the back of rising local investments, strong household consumption, and higher government spending, the National Statistical Coordination Board (NSCB) reported Thursday.

The Philippines is in “a much better position than other emerging economies in terms of ability to withstand problems in the global economy,” Socioeconomic Planning Secretary Arsenio Balisacan Thursday said in a briefing.

Because of the economy’s favorable performance in the second quarter, the country now has a greater chance of exceeding the government’s official full-year growth target of 6 to 7 percent,  Balisacan explained.

Malacañang officials took heart from the economic report that detailed the country’s performance in the last quarter.

In a statement, Palace officials yesterday said that, despite the challenging climate for emerging economies, the Philippines showed remarkable resilience.

“The heady growth rate, which has not dipped below 6 percent since the first quarter of 2012, hews closely to the GDP growth targets set by the Philippine Development Plan,” according to the Palace statement.

“Throughout the Aquino administration, we have persistently proven that good governance does result in good economics. As such, we will continue to push toward establishing an environment that underscores accountability, transparency, and that which encourages further partnerships between the public and private sectors to meet our developmental goals,” the officials said.

Last quarter marked the fourth consecutive time that the Philippines registered growth of at least 7 percent. The growth rate is considered significant enough to make a difference in the government’s poverty reduction effort.

The economy’s performance in the second quarter of the year brought the average growth rate in the first semester to 7.6 percent, even after a revision was made in the first quarter GDP expansion to 7.7 percent from the previous 7.8 percent.

The economy grew by 6.3 percent in the second quarter of 2012.

According to latest official data, poverty incidence in the country stood at 27.9 percent in the first semester of 2012—still one of the highest in Asia. This was just slightly lower than the 28.6 percent of the population considered poor in 2009, even though the economy maintained a healthy growth track from 2009 to 2012.

“We need to continue attracting investments, and we need to sustain strong growth over the long term,” Balisacan said.

The Philippines’ growth rate for the second quarter matched that of China during the same period, beating Indonesia’s 5.8 percent, Vietnam’s 5 percent, Malaysia’s 4.3 percent, Singapore’s 3.8 percent and Thailand’s 2.8 percent.

It was also faster than Japan’s 2.6 percent, Taiwan’s 2.5 percent and South Korea’s 2.3 percent, he added.

The economy posted a healthy growth record despite the contraction in exports. From January to June, Philippine export revenues dropped by 4.4 percent to $25.58 billion from $26.76 billion, due to the slow recovery of major markets like the United States, the euro zone, and Japan.

“If not for the decline in exports, our growth rate could have been even higher,” Balisacan said.

Balisacan also pointed to the increasing contribution of the industry sector. The sector posted the fastest year-on-year growth rate of 10.3 percent, helped up by higher investments in manufacturing.

In the past, the services sector usually posted the highest growth rate. In the second quarter, the services sector, which includes business process outsourcing (BPO) firms, grew by 7.4 percent.

“Business confidence in the economy has been improving, and this is translating into higher investments in manufacturing,” said Balisacan, who also serves as director general of the National Economic and Development Authority.


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  • jane jane

    Moderator, I replied to OpinionChan just minutes ago. I wonder what went wrong. I don’t see my post.

  • BoracayADMIRER

    We are in a golden time at the moment.. Let’s cease the opportunity.
    However, we cannot just rely on construction and fancy skyscrapers.
    We need JOBS, JOBS, JOBS.
    Tourism, BPO, Manufacturing and Mining are the solution.

    • jane jane

      I wish you mean SEIZE the opportunity.

  • PinoyDude

    To those who are complaining how difficult life is—kahit saang bansa naman eh mahirap.

    Ano ba ginagawa nyo?

    O di pa nila dama yung konting pag-usad ng ekonomya eto ang masasabi ko.

    1. If you’re in IT, retool your job skills by learning Android, iOS, Ruby on rails development. The future of IT is in the mobile platform sphere.

    2. If you have good command of the English language, why not try teaching English online?

    3. If you are direct beneficiary of an OFW through remittances why not open a business? What you need is good business idea and something that you will love doing. Don’t know where to start? Search the Internet instead of hanging out excessively in FB checking updates.

    Our schools should emphasize science, math and engineering curriculum to make our students competitive the job market.

    Ultimately, the government together with private sector should really develop our manufacturing industry. PH needs to produce something and be self-sufficient in the long term.

    • elpobre

      To those who are complaining, alam nyo po ba kung sino ang nag cocomplain? kung bakit hanggang ngayon hindi parin umaasenso ang Pilipinas pati ang mga purdoy? sila lang naman ang mga OFWs, mga Pinoy Western immigrants at syempre ang mga kababayan nating mga magsasaka, na 40 years na silang OFWs, immigrants at nagsasaka at nangingisda ganun parin ang kanilang buhay, hindi sila makabalik dahil walang trabahong makabuhay ng disente sa kanilang pamilya, magugutom ang kanilang mga kaanak kung uuwi sila ng Pinas, at ang mga magsasaka, araro’t kalabaw parin ang gamit dahil hindi sila makabili ng machinery sa kanilang sakahan dahil sa napakagastos magsaka at mangisda. Kayat ang kanilang mga anak ay hindi makapagtapos ng pag aaral, benibenta ang lupa para pambayad sa agency para sa domestic helper sa middle east. Face the reality, and look the situation, nag mula pa kay macapagal ang ating problema hanggang ngayong denikada na ang pagtaas ng ating GDP ganon parin, walang pinagbago. Alam nyo kung bakit, dahil sa dorobo sa gobyerno, walang kapitalista ang papasok, ang local kapitalista subra namang gahaman at mapagsamantala, walang supporta sa mga life sustainable sector like Agriculture and countryside wealth distributions gaya ng ginawa ni Marcos dati na green revolution, gintong ani at school feeding program ng mga bata.

      • PinoyDude

        Alam ko sino ang nagrereklamo. I read and hear about them in the news everyday.

        What I wrote in my post are some solutions that you can probably think about to slowly get out of poverty.

        Maraming OFW ang maganda ang buhay dahil marunong silang humawak. Marami din naman ang di umasenso di kasi nag-ipon o nagwaldas ng pera o kaya minalas.

        You can whine all you want about the lost opportunities in the past decade! You can never bring back the past.

        Tandaan mo nasa kamay mo ang pag-asenso. Warren Buffet aptly puts it… the most important asset you have is yourself–learn new things everyday, keep yourself healthy and work diligently.

      • elpobre

        Right, for those who have skills like what you mentioned, your talking about the individuals who hurdles 2 steps ahead. Pero ilang percent naman kaya ang walang ganyan?

      • PinoyDude

        Lahat ng tao pinagkalooban ng Diyos ng talino at pag-iisip.

        Nasa tao na mismo para alamin nya kung saan siya may abilidad.

      • elpobre

        Abilidad nya maglako ng Asin, hanggang ngayon asin parin ang tinda nya.

        Please type in you google Why is the Philippines Still Poor, PDI mismo ang sasagot, kaya siguro advocacy na ngayon ng PDI ang ibulgar ang bulok na kultura sa corruption ng bansa dahil narin sa sistemang hindi nadadala paitaas ang mg poorest of the poor kahit ang GDP ng Pilipinas ay aangat sa buong mundo dahil sa kabulukang ito.

      • Catalyst of Change

        Talagang hindi aasenso ang bansa kung meron tayong 90 million na elpobre — na mayroong pesimistikong pag-iisip, na hindi naniniwalang aangat siya sa kanyang indibidwal na kakayahan ng hindi umaasa sa corrupt na pamahalaan.

  • RJ Legaspi

    I am truly glad that the country is progressing. I feel annoyed though that there are still some (or should I say a lot) that would alway complain that they don’t feel the progress, that it hasn’t trickle down to everyone. The truth is you would never feel the progress of the economy while just sittin on your butt.
    I always hear from some people that their lives have been worse than before but they are the same people complaining, waiting and doing nothing. However, those I have heard their lives have becoming better and better are those that do something. They are the ones who studied well in school and work dilligently.
    When someone chooses to do nothing he chooses to be poor or worse stay poor. It isn’t everyone’s choice to be born poor but staying poor is an option. You either make your way out of it or keep rotting in it.

    • Justpassingby

      True. Contrary to popular belief the poor being the most vulnerable are the first to feel the change for the better or for the worst. Why? they are the ones who find work on a day to day basis and on bad times people tend to hold on to their cash so these people will not find work. In good times people will spend and buy so these poor people who have no skill find work as construction workers/laborers, delivery boys or even ambulant vendors in jobsites.
      Which means the growth sustain their livelihood. But if people expect that they will just wake up a millionaire one day without doing anything like upgrading their skills or sending their kids to school so they are better armed, they are mistaken. It will take a hundred years of positive growth and their descendants will live the same way if not worse. My extended family (brothers, cousins) took a generation to get away from the hand to mouth existence.
      One glaring example is my first cousin who migrated to Manila in the late 60′s after graduating in elementary. He becomes a tinsmith and earn when the economy is good but when the economy is bad and nobody would want to get their car spruced up, he did not even think twice digging in the garbage to find something he could recycle or sell. On all of these he make sure he doesn’t sacrifice one thing: sending his kids to (public) school. Now he can finally ride a car owned by family, courtesy of his kid/s who are now in managerial position.
      It takes a generation to change thier lot in life, us poor people should be realistic and work the same way. We should sieze these moments that we are earning due to good economy, send the children to school instead of bringing them to work as added helping hands; as my cousin have shown, it is worth the wait.

  • crisostomo_ibarra_the3rd

    This is another proof that the good governance of this administration is giving the good vibes sa economic front. Investment and government spending is spurring economic activities together with the contribution of the OFW remittances.

  • OpinionChan

    Articles like this are a joke. They give false hope in a nation that has been on its back since Marcos era. Strong local investment? You mean business controlled by the Taipans and the few? Strong consumption? People do not save their hard earned money. They spend spend spend and when its not enough they borrow more. Increased government spending? Pray tell on what they are spending it on. Failippines needs less government and less red tape.

    • http://twitter.com/erncastillo ern

      taipans or whoever…..what is important is to lift this country from poverty.

    • Tommy

      How exactly is this article a joke?

      Like it or not, the economy HAS grown, and the country IS enjoying strong investment and domestic consumption. It isn’t perfect, and as you point out there is still a lot of inequality, but the signs are positive.

      Just because you don’t like news doesn’t mean it isn’t true.

    • Mazza02

      No…it is individuals like you who are a joke. Thinly veiled anti-Filipino and everything about Philippines comments from chinese like you are tiresome.

      Whatever Philippines may need, one thing is for sure….it needs less people of your ilk. Your kind are all over the internet, in every forum and comments section to spread negativity about Filipinos and Philippines even so far as impersonating and pretending to be one.

      It is apt that you mention the corruption of Marcos who is of chinese descent as well as the greed of the taipans who are mostly chinese also. It is good that you point your kind’s complicity in making Philippines poorer.

  • mang_berto

    Positibong balita ito. Pero sigurado, marami na namang crabs ang magtatahi-tahi ng istorya para maging negative itong positive na balita na ito.

    • sanjuan683

      hahahahahahahaha ikaw lang yata ang naniniwala diyan at yun nasa malakanyang hahahahahahahahahangal bihira nga ako madumi kasi kakaunti na lang ang kinakain ko dahil sa kahirapan. hahahahhahahaha

      • mang_berto

        kaya pala baliw ka na, hindi ka na nakaka-kain ng tama.

        at saka baliw ka nga kasi uunahin mo pa ang gumastos para mag-internet at mag-comment kesa bumili ng pagkain. magtrabaho ka, para makakain ka ng tama.

  • Bayang_magiliw

    What does China the BULLY and PNoy detractors have in common?

    They don’t want strong economic growth for my beloved motherland the Philippines!!!

    They are afraid of the Philippines becoming economically strong for the following reasons:

    For China, being economically strong means we will have the money to buy weapons that will deter them from stealing our natural resources!!! A strong economy will produce a strong military!!!

    For the PNoy detractors (GMA, UNA and the 3 Kings, CBCP), it means Aquino’s allies will stay in power beyond 2016. That will result in longer jail time for GMA and Binay will not win in 2016! Last but not the least, magugutom ang pamilya ng mga gahamang corrupt officials!!! Expect the hound dogs of these greedy politicians and CBCP to attack: loser Leonor Briones, Kabayad Noli De Cashtro, Doro-gista, Toby Adik Tiangco at the most corrupt whistle blower kuno Jun Lozada (due to CBCP not accepting defeat in the RH law battle).

    • Tommy

      Liked for the Binay not winning n 2016.



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