Backed by the strong performances of trade, manufacturing, agriculture, fishery and forestry (AFF), transportation, communication and storage (TCS), finance and private services, the domestic economy zoomed to its third highest growth since 1995, as the seasonally adjusted estimate of the Gross Domestic Product recorded a 2.5 percent growth in the first quarter of 2007. The growth was spurred by a regime of low inflation, continuing appreciation of peso, government's pump priming activities and election preparations. However, the reduced growth of the Net Factor Income from Abroad slowed down the seasonally adjusted Gross National Product growth to 0.9 percent, from a robust expansion of 3.1 percent in the previous quarter.

Original Data vs.
Seasonally Adjusted Gross Domestic Product

PERSONAL CONSUMPTION EXPENDITURE

On the demand side, seasonally adjusted personal consumption expenditure expanded by 1.8 percent in the first quarter of 2007, almost equaling its previous quarter growth of 1.9 percent. The continuous inflow of compensation from OFWs coupled with stable interest rates and lower inflation rates continued to spur household consumption.

AGRICULTURE, FISHERY AND FORESTRY

After two uneventful quarters characterized by flat and negative growths, the agriculture, fishery and forestry sector bounced back with a 2.5 percent expansion in the current quarter. The sector recovered exuberantly due to the growths of fishery, corn, other crops, palay and livestock.

INDUSTRY

With all sub-sectors giving strong performances, the industry sector accelerated to a robust 2.1 percent growth in the first quarter of 2007, from a 0.9 percent upturn in the preceeding quarter. The improvement is attributed mainly to the strong growth of manufacturing and construction.

SERVICES

The services sector grew by 2.7 percent, slightly slower than the 3.0 percent increase in the previous quarter. The expansion in the services sector drew hugely from trade. Other sub-sectors which contributed to the growth were TCS, finance and private services.