MANILA, Aug 9 (Mabuhay) –The Philippine economy grew at a slower pace in the second quarter of the year, the Philippine Statistics Authority (PSA) reported on Tuesday.
The country’s gross domestic product (GDP) — the total value of goods and services produced in a specific period — grew by 7.4% during the April to June period, slower than the downwardly adjusted 8.2% GDP growth in the first quarter of the year.
The second quarter GDP also compares with the 12.1% growth in the same period last year.
Quarter-on-quarter, the economy saw a contraction of 0.1%.
“The global headwinds, particularly inflation, those coming from fuel and food contributed to that somewhat slowdown,” Socioeconomic Planning Secretary Arsenio Balisacan said at a press conference.
Inflation has been growing faster in April (4.9%), May (5.4%), and June (6.4%) as global oil supply disruptions brought by the Ukraine-Russia war and domestic supply challenges kept fuel and food prices elevated.
Balisacan said that if not for inflation, the second quarter GDP “definitely it would be better.”
The National Economic and Development Authority (NEDA) chief said that inflationary pressures to growth are expected to continue in the second half of the year.
Nonetheless, he said the global headwinds and inflation are already taken into consideration in the economic managers’ target of 6.5% to 7.5% growth for the entire year.
Balisacan said that to hit the lower end of the target, the second half GDP should grow 5.3%. Meanwhile, to achieve the upper end of the goal, the economy should grow 7.2% in the July to December period.
As of the first half of the year, the country’s GDP grew at 7.8%, according to the NEDA chief. (MNS)