GDP grew 4.5-5.5% in 2nd quarter

GROWTH PROPELLER. Agriculture, together with mining, propelled the Philippine economy to grow by probably 4.5 to 5.5 percent in the second quarter, according to Economic Planning Secretary Cayetano Paderanga Jr. during a briefing Thursday.INQUIRER PHOTO

Economic growth, as measured by the gross domestic product (GDP), was estimated to have expanded by 4.5 to 5.5 percent in the second quarter, with agriculture and mining leading the charge, Economic Planning Secretary Cayetano Paderanga Jr. said in a briefing Thursday.

The second-quarter growth was likely attained “despite the external shocks from natural disasters in Japan, the slow recovery of the US, the debt crisis in some of the countries in the euro zone, the social unrest in the Middle East and North Africa, and higher oil prices,” Paderanga said.

Paderanga said that based on available data, growth in industry and services might have been slower compared with the same period in 2010.

However, he said agriculture alone registered a 6.8-percent growth in the second quarter. The agriculture sector (combined with fisheries and forestry) contributed about 18 percent to GDP, or the value of goods and services produced within the country for a given period.

Paderanga said the increase in crop production following the recovery from the El Niño effects last year contributed to the strong growth in the so-called “agriculture, fisheries and forestry” sector.

Despite the good performance in farming, Paderanga said it could still have been dampened by the adverse weather conditions during the review period.

Meanwhile, Paderanga said the industry sector was probably affected by the adverse effects of external developments on the manufacturing sector and the expected continued contraction in public construction.

Growth in the services sector might have been pulled down by significant contractions in vehicle sales due to supply chain disruptions associated with the conditions in Japan, which was ravaged by a strong earthquake and tsunami last March.

The transportation sector was also affected by high oil prices.

The National Statistical Coordination Board will release on August 31 the official estimates on the GDP and related economic figures for the second quarter.