Industry and services drive Phl production

CEBU, Philippines - The Bangko Sentral ng Pilipinas reported that the country’s main growth contributors are industry and services in production, while expenditure is mainly driven by consumption and net exports.

The services sector contributed 3.5 percent to the country's 6.4 percent gross domestic product growth in the second quarter of this year. Industry sector accounted 2.5 percent while agriculture, hunting, forestry and fishing contributed only 0.3 percent.

The manufacturing industry in particular grew 10.8 percent in the second quarter, higher compared to 6.9 percent recorded in first quarter.

On the expenditure side, household consumption accounted 3.6 percent while net exports shared 4.6 percent of the total GPD growth in second quarter.

In an economic briefing in Cebu last week, BSP deputy governor Diwa Guinigundo also announced the country has sustained an upbeat investments outlook with a consistent increase in net foreign direct investments.

He also noted a slight increase in investments approved by the Board of Investments and Philippine Economic Zone Authority.

"Also, business and consumer sentiments remain bullish," the central bank official said, citing the 52.9 percent growth in business confidence, as indicated in the Business and Consumer Expectations Survey during the third quarter.

Guinigundo also noted the increase of the government's infrastructure spending as share to the GDP. For this year, the country's infrastructure outlay is at 3.5 percent and expected to increase to four percent next year and 5.1 percent in 2016, according to the Budget Department.

He further explained the government has been taking measures to address supply-side constraints. One measure, he said, is easing the port congestion which has already affected the country's economic performance.

Addressing weather-related disturbances and rice importation are two other steps the national government has taken, he added.— Carlo S. Lorenciana (FREEMAN)