Articles worth reading
The CRS-AFP band, the official band of the Armed Forces of the Philippines (AFP), sings three of its original compositions at the Wish Bus 107.5. The group sang stories of soldiers at work and love for the country / PNA / Christine Cudis

Military band performs at radio music program

account_balanceMetro Manila access_time5 days ago

The Civil Relations Service – Armed Forces of the Philippines (CRS-AFP) band performed at Wish FM 107.5 Bus in the Lapu-Lapu Grandstand in Camp Aguinaldo on December 2. The CRS-AFP band performed three of its original songs that spoke of ...

Typhoon

'Tisoy' expected to move out of PAR on Thursday

account_balanceMetro Manila access_time4 days ago

Typhoon "Tisoy" (international name Kammuri) maintained its strength it moved west toward Mindoro. In its 8 a.m. severe weather update Tuesday, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) ...

Marikina advises residents to be on alert for 'Tisoy'

account_balanceMarikina access_time5 days ago

The Marikina City Disaster Risk Reduction and Management Office (CDRRMO) advised residents to be on alert as Typhoon Tisoy (international name: Kammuri) is expected to hit the country on Monday night. CDRRMO and Marikina Rescue 161 chief D...

Metro Manila News

GDP grows at four-year low of 5.5%

account_balanceMetro Manila chat_bubble_outline0 Comments

The gross domestic product of the Philippines grew 5.5 percent in the second quarter, the slowest in 17 quarters, because of a drought that hit the farm sector and delayed implementation of 2019 budget that affected infrastructure spending.

The Philippine Statistics Authority said GDP growth slowed from 5.6 percent in the first quarter and 6.2 percent a year ago.

“This means that we will have to grow by an average of at least 6.4 percent in the second half to reach the low-end of the full-year growth target of 6.0 to 7.0 percent in 2019,” SocioEconomic Planning Secretary Ernesto Pernia said in a statement.

Pernia said the second-quarter growth was anticipated because of the challenging times. “The past year, we had enumerated the major ones that we thought would impact our economic performance, namely the El Niño phenomenon, the increasing protectionism in advanced economies, and the election ban on construction activities,” he said.

Pernia said the El Nino phenomenon was responsible for the contraction in the output of the water-sensitive crop such as palay which contracted by 5.5 percent and corn which declined by 8.4 percent.

“Also on the El Niño phenomenon, we note that though we only experienced a mild El Niño, the impact on water supply, particularly in Metro Manila, was severe. And this adversely affected consumer confidence, resulting in a slowdown in household consumption, growing by 5.6 percent in the second quarter, compared with 6.2 percent growth in the first quarter,” he said.

“The water crisis appears to have resulted from poor coordination between the government [with more than thirty agencies in charge] and the private distributors. Once again, we call for the creation of an apex water body to handle management and generation of water resources, and another one to regulate water use. We envision a setup similar to the energy sector, where there is a Department of Energy and an Energy Regulatory Commission,” Pernia said.

Pernia, who serves as the director-general of the National Economic and Development Authority, said the growing protectionist stance in the advanced economies was having a moderating impact on the IT-BPM sector.

Data showed that exports of miscellaneous services only grew by 1.3 percent, compared to double digits three years ago.

“Note that the sector is also being adversely affected by the rise of artificial intelligence. We need to encourage the sector to re-tool and reform in order to service the higher value-added business processes,” Pernia said.

He said growth was also affected by the anticipated ban on public works and other spending, leading up to the May 2019 elections.

“The weak economic performance during the second quarter of 2019 is the continuing effect of that delay in the passage of the 2019 budget, coupled with the election ban. Government consumption spending has slowed down; capital formation has declined rather sharply, particularly on the government’s side. Public construction dropped by 27.2 percent for the second consecutive quarter, which offset the growth brought in by private construction,” Pernia said.

“For this reason, we are calling for the timely passage of the national budget for fiscal year 2020, so as not to derail next year’s economic growth. This is crucial to the delivery of the government’s promises such as the completion of the 'Build, Build, Build program' and the full implementation of the country’s social development programs, such as the free tertiary education, the universal health care, and the expanded conditional cash transfer, among others,” said Pernia.

date_rangeDate Published
3 months ago
shareShare article
folder_openArticle tags
content_copyCategorized under

Share your thoughts with us

Related Articles

Caloocan City Mayor Oscar Malapitan and Valenzuela City Mayor Rex Gatchalian

Caloocan, Valenzuela deny rumors on series of abductions

account_balanceMetro Manila chrome_reader_mode5 days ago

Caloocan City Mayor Oscar Malapitan and Valenzuela City Mayor Rex Gatchalian denied rumors on abduction cases in the two cities. This followed reports in the media of nine missing persons in Pasay City. Closed-circuit television footage showed that ...

Farmers Market

Inflation rises slightly to 1.3%

account_balanceMetro Manila chrome_reader_mode1 day ago

Inflation rate slightly picked up to 1.3 percent in November from a 42-month low of 0.7 percent in October, but the government said it is not a cause for concern/ Headline inflation slightly inched up after a five-month slowdown in price i...

CCP Simbang Gabi / PIA

CCP to host 'Simbang Gabi'

account_balancePasay chrome_reader_mode3 days ago

The Cultural Center of the Philippines is hosting "Simbang Gabi" at the CCP Main Building Ramp at 5 am from December 16 to 24, 2019 and 8 pm on Christmas Eve. CCP in a statement said  an average of 800 people per day attends the ...

Single use plastic bags / AAP Image / Angelo Velardo

Producers oppose P10 tax on plastic bags

account_balanceMetro Manila chrome_reader_mode5 days ago

The Philippine Plastics Industry Association Inc. (PPIA) warned that the proposal imposing an excise tax on single-use plastic bags can have a negative economic impact. During the hearing of the House Committee on Ways and Means, PPIA president...

Margielyn Didal / PNA

Filipino athletes add skateboarding medals in SEA Games

account_balanceMetro Manila chrome_reader_mode1 day ago

Margielyn Didal won another Southeast Asian Games gold medal in the skateboarding evebt at Sigtuna Hall of the Tagaytay International Convention Center. Didal defeated compatriot Christiana Means in the finals to clinch the gold. Means set...

Philippine Southeast Asian Games Organizing Committee (Phisgoc) chairman, House Speaker Alan Peter Cayetano (left), receives the award from Sports Industry Awards (SPIA) CEO Eric Gottschalk during the SPIA conference at the Grand Hyatt Manila on Tuesday (Dec. 3, 2019) / PNA

Asian body recognizes Phisgoc as ‘best SEAG organizer’

account_balanceMetro Manila chrome_reader_mode3 days ago

The Sports Industry Awards (SPIA) Asia recognized the Philippine Southeast Asian Games Organizing Committee (Phisgoc) as the best organizer of the SEA Games as the country hosted the world-class opening ceremonies and organized 56 sports compris...

Advertisement