PH Q1 GDP contraction adjusted from 4.2% to 3.9% – Illinoisnewstoday.com

The Philippine economic contraction in the first quarter was adjusted from 4.2% reported by the Philippine Statistics Authority (PSA) in May to 3.9%, approaching the achievement of the full-year growth target. PSA explained that adjusted figures show that professional and business services declines are 4.4% slower than the previous year, up from 6.5% in previous

The Philippine economic contraction in the first quarter was adjusted from 4.2% reported by the Philippine Statistics Authority (PSA) in May to 3.9%, approaching the achievement of the full-year growth target.

PSA explained that adjusted figures show that professional and business services declines are 4.4% slower than the previous year, up from 6.5% in previous reports.

The construction decline has been adjusted from the previous 24.2 percent to 22.6 percent. The reduction in ownership of real estate and homes was also 11.7 percent smaller than the tentative estimate of 13.2 percent.

PSA also said that GDP combined with Filipino output abroad in the first quarter was slightly revised from the 10.9% decline reported in May to 10.6%. This is because net primary income from other parts of the world has shrunk by 75.6%, adjusted from the previously slightly higher 75.8%.

This adjustment narrows the quarterly growth required to reach the 6-7% growth target. The government will report on GDP performance in the second quarter on Tuesday.

Rajiv Biswas, Chief Asia Pacific Economist at IHS Markit, said Monday that GDP is likely to increase by 12% year-on-year in the April-June quarter. The Philippines has fallen into a severe and protracted blockade. “

“A gradual improvement in economic activity from late 2020 to early 2021 is expected to restore overall growth in the second quarter of 2021,” Biswas said for an annual growth of 5.9% this year. Said. , Below the government target.

“The Philippine economy is expected to continue its moderate expansion in the second half of the year, with a year-on-year growth rate of about 8% in the last two quarters of 2021, but there are significant downside risks in the short term. Yes, the rest of the outlook for 2021 is due to the expanding COVID-19 delta wave, which can also significantly disrupt economic activity, “Biswas said.