MANILA, Philippines: The Philippine economy slowed down to 6% during the 2nd quarter of the year, the Philippine Statistics Authority (PSA) said on Thursday, August 9.
The gross domestic product (GDP) from April to June 2018 is lower than the revised 1st quarter figure of 6.6%. The growth is also slower than the 6.7% recorded during the same period last year.
It also fell short of market expectations. Estimates had ranged from 6.6% to as high as 7%.
Socioeconomic Secretary Ernesto Pernia attributed the slowdown to policy decisions which would “promote sustainable and resilient development.”
Pernia said the closure of Boracay “partly made a dent on the economy with growth in exports of services slowing to 9.6% in the 2nd quarter from 16.4% in [the] 1st quarter.”
“We are also referring to regulations in the mining sector – the closure of several mining pits and the excise tax on non-metallic and metallic minerals – so that mining and quarrying sector showed a lackluster performance. It is down by 10.9%,” Pernia said.
“Moreover, the stricter enforcement of regulations on aquaculture producers at Laguna Lake resulted in the drop of freshwater fish catch,” he added.
Pernia said the measures will ensure sustainable and long-term growth for the economy. The policy decisions were also “prudent and judicious.”
