PHL economy grows 6.8% in 2016, fastest since 2013

The Philippine economy grew by 6.8 percent in 2016, the fastest since 2013, after growing by 6.6 percent in the fourth quarter, the Philippine Statistics Authority (PSA) revealed on Thursday.

In a press conference Thursday, National Statistician Lisa Grace S. Bersales said the gross domestic product (GDP) noted a growth of 6.6 percent in the last three months of 2016, compared with the 6.3 percent in the fourth quarter of 2015,  but lower than the revised 7.0 percent in the third quarter.

It was no longer the fastest growing economy in Asia, according to PSA data.

"We are likely either the third or fourth fastest growing, major Asian emerging economy in the fourth quarter after China’s 6.8 percent and Vietnam’s 6.7 percent," Socioeconomic Planning Secretary Ernestor Pernia said during the same press conference.

"For the full year of 2016, we could be the second fastest, with China growing at 6.7 percent and Vietnam at 6.2 percent for the whole year," Pernia noted.

Q4 main drivers

"Manufacturing, Trade, and Real Estate, Renting and Business Activities were the main drivers of growth for the quarter," Bersales said.

The industry sector was the fastest at 7.6 percent, up from the 6.5 percent in the fourth quart of 2015, but services decelerated to 7.4 percent from 7.8 percent.

On the other hand, agriculture maintained a negative trajectory, falling by 1.1 percent from a 0.2 percent drop.

The fourth-quarter growth was backed by higher investment and consumption spending during the period, Pernia noted. "This is testament that our economy remains robust and is growing at a healthy and steady pace."

The latest figures brought the full-year 2016 growth to 6.8 percent, in line with the 6.0  to 7.0 percent government target, and up from the revised 5.9 percent for the whole of 2015.

Fastest since 2013

PSA data showed it was the fastest full-year growth since the 7.1 percent registered in 2013.

"The 6.6 percent growth in the last quarter of 2016, backed by higher investment and consumption, is testament that our economy remains robust and is growing at a healthy and steady pace," said Pernia. 

"Although this is lower than the 7.0 percent growth in the third quarter of 2016, this is higher than the 6.3 percent growth recorded during the fourth quarter of 2015," he said.

"Let me note that the last quarter growth of an election year is usually slower than the first half due to the transition of government, and as investors adopt a 'wait-and-see' attitude," Pernia added.

The Cabinet official, however, said the economy will continue to grow this year and beyond. "We believe that the 6.5 to 7.5 percent target is highly likely. After 2017, we expect growth to expand further by 7 to 8 percent," he said. —VS/KG, GMA News