The economy expanded at the rate of 5.7 percent in the first three months of the year in terms of the gross domestic product (GDP), slower than various analyst forecasts averaging 5.9 percent during the period but quicker than the adjusted but scaled-back growth of only 5.5 percent a quarter earlier, the Philippine Statistics Authority (PSA) said on Thursday.
According to the PSA, the continued growth was broad based and marked a year-long series of expansions pushed higher in this case by government spending which accelerated at the rate of 1.7 percent after having actually fell by one percent in the fourth quarter last year.
External trade also proved a major contributor to sustained growth as the country’s exports grew 7.5 percent after having also actually slowed by 2.5 percent a quarter earlier. Imports were at a soft 2.3 percent expansion from two percent.
Private or household consumption was sustained at 4.6 percent although also slower than the 5.3 percent expansion a quarter earlier while investments grew by only 2.3 percent, sharply lower than a quarter earlier when this expanded by 10.2 percent. Analysts said high domestic borrowing costs kept a lid on private consumption no matter than remittances and employment numbers during the period proved supportive.
On the production side, agriculture expanding by 1.3 percent in the fourth quarter last year moderated in the first quarter this year to only 0.4 percent, its continued expansion hobbled by the adverse impact of dry weather resulting from the El Nino weather disturbance.
But even then, the government remains focused on expanding the economy at a rate ranging from six percent to seven percent this year.
