The second quarter gross domestic product (GDP) growth placed well within the government’s 6 to 7 percent target for the year, making it the highest expansion since the 6.4 percent in last year. | PHOTO: JMS
The Philippine economy grew by 6.3 percent in the second quarter of the year, accelerating from the revised 5.8 percent growth in the previous quarter as the government spending surged, the Philippine Statistics Authority (PSA) reported Thursday.
The second quarter gross domestic product (GDP) growth placed well within the government’s 6 to 7 percent target for the year, making it the highest expansion since the 6.4 percent in last year.
READ: Philippine economy grew 5.7% in Q1
This was also faster than the 6 percent average forecast in an Inquirer poll of 11 economists conducted last week.
The PSA attributed the expansion from the construction which grew by 16 percent. Trailing behind are wholesale and retail trade; repair of motor vehicles and motorcycles at 5.8 percent and financial and insurance activities which expanded by 8.2 percent.
In terms of demand, household final consumption stood at 4.6 percent, slower than the 5.5 percent in the April-to-June period a year ago.
Meanwhile, state spending surged by 10.7 percent from 1.7 percent in the previous quarter and bounced back from the 7.1 shortfall last year.
This was the highest growth since the 11.1 percent in the second quarter of 2022.
Gross capital formation, the investment component of the economy, accelerated by 11.5 percent from 0.5 percent.
Net primary income from the rest of the world placed at 24.7 percent, easing from 57.6 percent in the previous quarter.