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Monday, October 23, 2017 | MANILA, PHILIPPINES
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   economic indicators

Date posted: Thursday, August 18, 2016 | Manila, Philippines

BY Lourdes O. Pilar, Senior Research Assistant

Q1 growth slower than first estimated

THE ECONOMY in 2016’s first quarter grew slower than previously reported, the Philippine Statistics Authority (PSA) said a day before it releases preliminary estimates for the second quarter.

The country’s gross domestic product (GDP) -- which measures the value of final goods and services produced in a country -- expanded by 6.8% in the first three months of 2016, slower than the initial estimate of 6.9%.

PSA said in a statement that the first-quarter revision was triggered by changes in the estimates made for three sub-sectors under services, namely: trade and repair of motor vehicles, motorcycles, personal and household goods; public administration and defense; as well as compulsory social security and other services.

Trade and repair of motor vehicles, motorcycles, personal and household grew by 7.5% in 2016’s first three months, slower than the 8.0% initially reported. Public administration and defense recorded the biggest downward revision to 5.2% from 6.8%, while growth in “other services” was revised to 7.4% from 8.0%.

The first-quarter 2016 revision comes ahead of today’s release of the preliminary estimates for this year’s second quarter GDP. A BusinessWorld poll of 12 economists and analysts last week bared an estimate median of 6.8% growth for last quarter.

The government now targets 2016 growth at 6-7%, tempered last July from 6.8-7.8% under the previous administration that ended its six years on June 30.

In a presentation at the Social Development Initiatives Summit at the SMX Convention Center in Davao City yesterday, Socioeconomic Planning Secretary Ernesto M. Pernia noted that “although economic growth targets have been mostly missed [since at least 2012], growth has nevertheless markedly improved.”

“Together with the acceleration in growth, unemployment has fallen faster than expected, although underemployment remains at double digits,” Mr. Pernia said, adding that “while poverty reduction is accelerating, it remains quite slow.” -- with Lean S. Daval Jr. in Davao City

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