Third Quarter 2011
Philippine Economy grows by 3.2 percent in Q3 2011
Posted 28 November 2011
The domestic economy has decelerated for the third consecutive quarter from the 7.3 percent honey moon growth last year to 3.2 percent this year. The so called death spiral of debt that hounds our trading partners, the uninvigorating, albeit already expanded government spending, and the decline in fishing due to unfavorable weather and the high cost of fuel contributed to this relatively lethargic growth. As almost always, the Services sector saved the domestic economy from posting an even lower growth. With the downwardly revised second quarter GDP estimate, this puts the growth for the first nine months of 2011 at 3.6 percent, quite a distance even from the lower end of the whole year target of 4.5 percent.
On the demand side, consumer spending bolstered growth but Construction continued to suffer from the much delayed implementation of the Public-Private Partnership program while Export of Goods really got hit by the global crisis, posting a double digit decline for the first time since the second quarter of 2009.
With the global economy facing grim and gloom, Net Primary Income declined by 3.4 percent cutting the growth of Gross National Income (GNI) from 6.9 percent to 1.6 percent.
On a seasonally adjusted basis, GDP grew by 0.3 percent while GNI grew at a faster pace of 0.4 percent in the third quarter from 0.1 percent in the second quarter of 2011. The Agriculture, Hunting, Forestry and Fishery sector declined hugely by 3.9 percent while Industry rebounded to 0.3 percent from a decline of 4.2 percent in the previous quarter. The modest performance of manufacturing weakly supported by Mining & Quarrying was negated by the contraction of Construction and the decline of Electricity Gas & Water. On the other hand, Services sector recorded a 1.2 percent growth for the third quarter of 2011 from 2.8 percent in the previous quarter, as all subsectors recorded positive growth.
With projected population growing by1.9 percent to 96.0 million, per capita GDP grew by 1.2 percent, per capita GNI declined by 0.3 percent while per capita HFCE grew by 5.1 percent.
ROMULO A. VIROLA