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The Philippines revises Q2 economic growth rate

From 7.4 percent, it grew slightly, reaching a final rating of 7.5 percent

Meanwhile, some analysts have predicted that the Philippines might not even achieve the target range of 6.5 to 7.5 percent for 2022. r.nagy/Shutterstock

The Philippine Statistics Authority (PSA) announced Wednesday that the country’s Q2 economic growth was revised upward due to improvements in construction, real estate, and manufacturing, reported GMA News Online. From 7.4 percent, it grew slightly, reaching a final rating of 7.5 percent.

The major factors for the revision were construction which increased by 19.5 percent (previously 19 percent); real estate and ownership of dwellings up 4.4 percent (previously 3.9 percent); and manufacturing up 2.2 percent (previously 2.1 percent).

More: Firms increase growth forecast for the Philippines

However, economic growth slowed down in Q3, according to CNN Philippines, which was likely due to rising inflation and the plunging peso, affecting consumers’ purchasing power.

A survey of 12 economists revealed growth forecasts ranging from 4.6 percent to 7.7 percent, averaging 6.1 percent. This number is weaker in comparison to Q2’s 7.4 percent. It also showed a median GDP growth estimate of 6.2 percent.

Meanwhile, some analysts have predicted that the Philippines might not even achieve the target range of 6.5 to 7.5 percent for 2022.

However, according to Sonia Zhu, an associate economist at Moody’s Analytics, the Philippines is on track to meet its goal as a result of the government’s decision to offer subsidies to lessen the impact of higher food and other prices, as well as the easing of travel restrictions that helped the tourism sector.

Ser Percival K. Pea-Reyes, associate director at the Center for Economic Research and Development at the Ateneo de Manila University, concurred with Zhu’s upbeat assessment.

“We believe that the country is on track to meet the government growth target for the whole year. Perhaps, we could even exceed the target slightly (7.6% full-year real GDP growth),” he said.

The Property Report editors wrote this article. For more information, email: [email protected].

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