The seasonally adjusted GDP accelerated to 2.0 percent from 0.3 percent in the previous quarter on account of the sturdy performance of Industry, which grew by 5.0 percent from 0.1 percent in the previous quarter and Agriculture Fishery and Forestry, which grew by 3.7 percent from negative 1.0 percent in the previous quarter. Services, on the other hand, contributed negatively to the seasonally adjusted GDP with a 0.5 percent contraction. Meanwhile, the seasonally adjusted GNP, which has been on a positive streak since the second quarter of 2003, jumped by 3.0 percent from 0.8 percent in the first quarter of 2008 due to the continued inflow of remittances from Overseas Filipino Workers.

Original Data vs.
Seasonally Adjusted Gross Domestic Product

PERSONAL CONSUMPTION EXPENDITURE

On the demand side, the high inflation regime ended the positive streak of the seasonally adjusted Personal Consumption Expenditure as it declined by 0.3 percent. This is only the third time PCE recorded a negative growth since the first quarter of 1988. The first two declines were registered in the first quarter of 1991, at negative 1.2 percent, and in the second quarter of 1992 at negative 0.2 percent.

AGRICULTURE, FISHERY AND FORESTRY

The Agriculture, Fishery and Forestry sector rebounded to 3.7 percent after suffering a 1.0 percent contraction last quarter on account of substantial growth in Sugarcane, Corn, Banana and Palay.

INDUSTRY

Coming from a minimal 0.1 percent growth in the 1st quarter, Industry recorded its highest growth of 5.0 percent since the fourth quarter of 1989. The robust performance of Industry was bolstered by the strong performances of Manufacturing, Construction and Electricity, Gas and Water.

SERVICES

Services sector registered a 0.5 percent contraction, the second largest decline since the first quarter of 1988. Highest decline was recorded in the first quarter of 1991 at negative 0.9 percent. The negative growth this quarter was largely on account of the slow down in all its sub-sectors except Ownership of Dwellings and Real Estate and Government Services.