GDP growth in Q2 promising, says DOF

Department of Finance / Photo Courtesy of dof.gov.ph

MANILA — The Department of Finance (DOF) announced that the economic growth of the country during the second quarter has recovered to about 7 percent, making the Philippines one of Asia’s best performers after a slow start this year.

According to DOH Undersecretary and chief economist Gil Beltran, the manufacturing output numbers released last week showed higher gross domestic product (GDP) growth during the months of April to June.

“The rise in manufacturing growth foreshadows a possible return to 7-percent real growth in the second quarter,” Beltran said.

The Philippine economy growth stands at 5.7 percent during the first quarter of the year, lower than the state’s target of 6.5 to 7.5 percent. In the same period, the manufacturing sector, which accounts for one-fifth of the output, only grew by 4.3 percent.

For the second quarter, the manufacturing sector grew by 13 percent. Beltran also added that sales were 50 percent higher.

“This means that the sector continued to draw down from inventory as in the first quarter. Replenishment of supply is necessary soon to avoid price increases,” he said.

Beltran’s assessment counters earlier forecasts about the slow growth of the Philippines GDP in the second quarter.

According to the International Monetary Fund (IMF), the country’s second quarter GDP is expected to slow down given the government delays in the rehabilitation plan for Visayas.