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GDP contracts 4.2% in first quarter

The Philippine economy shrank 4.2 percent in the first quarter from a year ago, representing the fifth consecutive quarter of contraction amid the lingering impact of the coronavirus pandemic.

PSA: GDP growth (%)
Data from the Philippine Statistics Authority, however, showed that the first-quarter gross domestic product figure eased from -8.3 percent in the fourth quarter of 2020.  

The net primary income from the rest of the world registered a decline of 75.8 percent, leading the gross national income to drop by 10.9 percent in the first quarter.

The PSA said the main contributors to the GDP decline in the first quarter were construction, with -24.2 percent; other services, -38.0 percent; and real estate and ownership of dwellings, -13.2 percent.

Contributors to growth were led by financial and insurance activities, 5.2 percent; public administration and defense; compulsory social activities, 7.5 percent; and human health and social work activities, 11.7 percent. 

Other industries which managed to grow during the period were information and communication, 6.3 percent; manufacturing, 0.5 percent; and electricity, steam, water and waste management, 1.9 percent.

Among the major economic sectors, agriculture, forestry and fishing declined by 1.2 percent in the first quarter while services and industry contracted by -4.4 percent and -4.7 percent, respectively.

Household final consumption expenditure declined by 4.8 percent, along with the gross capital formation, -18.3 percent; exports, -9.0 percent; and imports, -8.3 percent.

The government final consumption expenditure grew by 16.1 percent in the first quarter of 2021. 

The first quarter GDP contraction was deeper than the 0.7-percent decline in the same period in 2020 at the onset of the pandemic.

Last year, the GDP contracted by 9.6 percent, the worst since the end of the World War 2.

This year, the government expects GDP to grow between 6.5 percent and 7.5 percent.
 

Topics: GDP , GNI , Philippines , growth , contraction , first quarter 2021 , NEDA , PSA
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