Quezon city: Philippine economic growth slightly picked up to 5.5 percent in the second quarter of the year, making the country one of the fastest-growing in emerging Asia. In a briefing at the Philippine Statistics Authority office, National Statistician Dennis Mapa highlighted that the economic growth during the quarter was slightly higher than the 5.4 percent expansion recorded in the first quarter of this year.
According to Philippines News Agency, while growth slowed from 6.5 percent in the second quarter of 2024, Department of Economy, Planning, and Development Secretary Arsenio Balisacan stated that the Philippine economy continued to show resilience and stability amid external headwinds. Balisacan noted the country’s position among the fastest-growing economies in emerging Asia, trailing behind Vietnam’s 8 percent growth, but ahead of China and Indonesia.
The agriculture sector notably recorded a 7 percent growth during the quarter, a significant recovery from a 2.3 percent contraction in the same period last year. Balisacan attributed this rebound to improved harvests of palay and corn, facilitated by initiatives from the Department of Agriculture.
The services sector also saw an increase, growing at a pace of 6.9 percent compared to 6.8 percent last year, with real estate and professional business services driving the growth. However, industry growth slowed to 2.1 percent from 7.9 percent, attributed to declines in output for certain products.
On the demand side, household consumption growth accelerated to 5.5 percent from last year’s 4.8 percent. Balisacan linked this to strategic efforts to manage inflation and enhance purchasing power, resulting in stabilized prices and improved employment conditions.
Government final consumption expenditures rose by 8.7 percent, driven by commitments to productive expenditures in various sectors. Despite a slowdown in public construction, exports grew by 4.4 percent while imports expanded by 2.9 percent.
Balisacan emphasized the strength and resilience of the Philippine economy, while noting the importance of translating economic growth into tangible improvements for ordinary Filipinos. The government is intensifying efforts in education, health, and other critical areas to promote economic inclusion and sustain human capital development.
Balisacan expressed confidence in achieving the lower end of the government’s 5.5 percent to 6.5 percent economic growth target for this year, citing the stabilization of the global economy as a contributing factor. Despite ongoing tariff uncertainties, he remains optimistic about the country’s economic trajectory.
