Photographer: Taylor Weidman/Bloomberg

Philippine GDP Rises 6.6% Last Quarter on Services, Industry

  • Economy expanded 6.8% in 2016, statistics office says
  • Nation seen as among fastest-expanding in the world until 2019

Philippine economic growth exceeded 6 percent for a sixth quarter, underscoring the nation’s resilience to global risks.

Key Points

  • Gross domestic product increased 6.6 percent from a year earlier in the fourth quarter, the Philippine Statistics Authority said in Manila Thursday. It matched the median estimate of 17 economists surveyed by Bloomberg. Growth was 7 percent in the third quarter
  • Growth was 6.8 percent in 2016, matching the median estimate of economists

Big Picture

While the U.S. and the European Union have criticized President Rodrigo Duterte’s deadly drug war and investors have balked at his anti-U.S. rhetoric, his ambitious $160 billion infrastructure plan and push for greater investment is strengthening the growth outlook. The World Bank forecast expansion will exceed 6 percent until 2019, among the fastest growth in the world this decade.

Economist Takeaways

  • “Data such as imports and remittances show a big rebound of demand, highlighting the Philippines’ burgeoning domestic demand - led by savings, low rates and strong demographics,” Trinh Nguyen, a senior economist at Natixis SA in Hong Kong, said before the report.

Other Details

  • Household spending, which makes up about 70 percent of GDP, rose 6.3 percent from a year earlier
  • Government spending gained 4 percent
  • Services increased 7.4 percent, industrial production rose 7.6 percent
  • Investment surged 15 percent

— With assistance by Ditas B Lopez, Michael J Munoz, Clarissa Batino, and Norman P Aquino

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