PH economy expands 6% in Q2

Socioeconomic Planning Secretary Ernesto Pernia said the April to June growth rate is “less than what we had hoped for” behind Vietnam’s 6.8 percent and China at 6.7 percent growth. (File Photo: National Economic and Development Authority/Facebook)

MANILA — The economy expanded by 6 percent in the second quarter of 2018, making the Philippines still one of the best-performing economies in Asia.

In a press conference on the release of economic data Thursday, Socioeconomic Planning Secretary Ernesto Pernia said the April to June growth rate is “less than what we had hoped for” behind Vietnam’s 6.8 percent and China at 6.7 percent growth.

Pernia attributed the slowdown partly to policy decisions undertaken that are expected to promote sustainable and resilient development.

He was referring to the temporary closure of Boracay Island from April to October 2018, which partly made a dent on the economy and growth in exports of services slowing to 9.6 percent in the second quarter from 16.4 percent in first quarter.

Pernia said the mining and quarrying sector also showed a lackluster performance amid the closure of several mining pits and the excise tax on non-metallic and metallic minerals.

“But, I emphasize, all measures should ensure sustainable and long-run growth for the economy. These policy decisions were prudent and judicious,” he said.

The gross domestic product (GDP) growth for the first six months of the year reached 6.3 percent.

The economy grew 6.6 percent in January to March.

“This implies that the Philippine economy would have to expand by at least 7.7 percent in the second semester to attain the low-end of the 7.0 to 8.0 percent growth for 2018,” Pernia said.