Philippine economy hits 6.4% in Q1, lower than expected

May 18, 2017

The Philippine economy grew 6.4 percent in the first quarter of this year, lower than the 6.9 percent growth during the same period last year. In a press conference on Thursday, Socioeconomic Planning Secretary Ernesto Pernia admitted that the January to March gross domestic product was "lower than desiredly expected." "We're expecting around midpoint" of the 6.5-7.5 percent target for 2017, he said. Pernia, also director general of the National Economic and Development Authority, attributed the lower than expected growth from the "dissipated" effect of election spending. Last year was an election year. Despite the lower growth, he said there was no need to revise the GDP target as the economic team may "revise upward" the target later on. Services grew 6.8 percent in the first quarter, lower than last year's 7.5 percent and industry 6.1 percent from 9.3 percent. Agriculture, which declined by 4.3 percent in the first quarter last year rebounded to 4.9 percent this year. (Celerina Monte/DMS)