The gloomy scenario of unabated spike in oil and consumer prices, sluggish external trade and the lethargic performance of the farm sector failed to dampen the Philippine economy as the seasonally adjusted estimates of the Gross Domestic Product and Gross National Product improved by 1.4 percent and 2.3 percent, respectively, during the second quarter of 2005. All the major sectors contributed to the growth of the economy.

Original Data vs.
Seasonally Adjusted Gross Domestic Product

PERSONAL CONSUMPTION EXPENDITURE

On the demand side, the Seasonally Adjusted Personal Consumption Expenditure accelerated to 1.5 percent from 0.8 percent during the first quarter of 2005 notwithstanding the continued hike in prices.

AGRICULTURE, FISHERY AND FORESTRY

The Agriculture, Fishery and Forestry sector reversed two quarters of decline with a 0.6 percent growth. The AFF contracted by 1.6 percent during the fourth quarter of 2004 and by 0.7 percent during the first quarter of 2005.

INDUSTRY

After recording its worst performance since the first quarter of 2001, the Industry sector made a significant turn around of 2.2 percent in the current quarter as the impact of the mining law started to be felt.

SERVICES

On the other hand, the seasonally adjusted Services sector decelerated to 1.1 percent during the second quarter of 2005 after posting the highest growth since 1995 at 2.8 percent. All sub-sectors except the financial sub-sector contributed to the slow down. Despite the deceleration, the Services sector continued to gain importance in the Philippine economy.