GDP growth falls to 3.2% in second quarter
August 28, 2003 - The SARS outbreak, the war in Iraq and the country’s peace and order problems dampened trade and investments in the second quarter, slowing gross domestic product (GDP) growth to 3.2% in the second quarter, from 4.5% in the first quarter and 4.1% in the second quarter last year.
Net income from abroad, however, grew faster at 22.6% from 13.3% in the first quarter and –18.5% a year ago, resulting in a GNP growth rate of 4.5% in the second quarter, lower than 5.1% in the first quarter but higher than the 2.3% growth a year ago.
With the slowdown in inflation, overseas remittances also pushed up personal spending growth to 5.1%, its fastest pace since the second quarter of 1997. Personal spending accounted for 70.7% of the domestic economy. On the other hand, government spending continued to decline in view of the fiscal deficit.
THE ECONOMY IN THE FIRST SEMESTER
Growth rates in % |
| |
2002 |
2003 |
| |
Q1 |
Q2 |
Sem 1 |
Q1 |
Q2 |
Sem 1 |
| Gross National Product |
4.3 |
2.3 |
3.3 |
5.1 |
4.5 |
4.8 |
| Gross Domestic Product |
3.8 |
4.1 |
4 |
4.5 |
3.2 |
3.9 |
| |
|
|
|
|
|
|
| By Industrial Origin |
|
|
|
|
|
|
| Agriculture, fishery and forestry |
4.8 |
1.9 |
3.4 |
2.9 |
1.6 |
2.3 |
| Industry |
2.1 |
3.5 |
2.8 |
4.1 |
1.7 |
2.8 |
| Services |
4.8 |
5.5 |
5.1 |
5.5 |
5 |
5.3 |
| |
|
|
|
|
|
|
| By Demand |
|
|
|
|
|
|
| Personal consumption |
3.5 |
3.8 |
3.7 |
4.9 |
5.1 |
5 |
| Government spending |
(1.9) |
5.1 |
1.8 |
(1.5) |
(8.7) |
(5.5) |
| Capital formation |
(11.1) |
(13.1) |
(12.1) |
17.4 |
(0.4) |
8.5 |
| Exports |
(5.1) |
6.8 |
0.6 |
3.6 |
1.6 |
2.6 |
| Less: Imports |
(5.1) |
4.6 |
0.0 |
24.0 |
6.5 |
14.4 |
| Source: National Statistical Coordination Board |
|
By industrial origin, the combined agriculture, fishery and forestry sectors grew 1.6% from 2.9% a quarter ago and 1.9% a year ago as palay and corn yields suffered from a mild dry spell followed by typhoons. Meanwhile, the industrial sector’s growth slid to 1.7% from 4.1% in the previous quarter and 3.5% last year with the slowdown in the manufacturing sector and the continued slump in the construction sector.
On the other hand, growth in services likewise slowed down to 5.0% from 5.5% last quarter and last year, reflecting gainers from the SARS outbreak, such as medical and health services and recreational services; and losers, such as retail trade, air transportation, and hotels and restaurants.
With a 4.5% GDP growth in the first quarter, the domestic economy expanded 3.9% in the first semester, slightly slower than 4.0% last year. GNP, however, increased to 4.8% from 3.3% a year ago. |
