THE Philippine economy grew at a slightly faster pace in the second quarter, supported by easing inflation that likely bolstered consumer spending, even as an election-related ban on public disbursements curbed government expenditure.
Gross domestic product (GDP) expanded by 5.5 percent in the three months ending June, up marginally from 5.4 percent annual growth in the first quarter.
However, this marked a significant slowdown from the 6.5 percent growth recorded in the same period last year and fell short of market expectations. A recent Inquirer poll of economists projected a 5.6 percent increase.
The latest GDP data, along with the six-year low inflation rate of 0.9 percent in July, will factor into the Bangko Sentral ng Pilipinasā policy deliberations when the Monetary Board convenes on Aug. 28.
BSP Governor Eli Remolona Jr. has said a rate cut this month is now āmore likely.ā
The main contributors to the second quarter growth were: wholesale and retail trade; repair of motor vehicles and motorcycles, 5.1 percent; public administration and defense; compulsory social security, 12.8 percent; and financial and insurance activities, 5.6 percent. (Ian Nicolas P. Cigaral Ā© Philippine Daily Inquirer)
