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The Philippines is among the fastest-growing economies in Southeast Asia, with upgrades to sovereign investment ratings confirming improvements in the country’s macroeconomic fundamentals. The Government of the Philippines has defined its development objectives as driving rapid but inclusive economic growth, accelerating employment on a massive scale, and reducing poverty.
The country’s Gross Domestic Product (GDP) in the fourth quarter of 2015 grew by 6.3 percent, the highest quarterly growth for the year. The growth, however, is slower than the 6.6 percent posted in the same period of last year. The fourth quarter GDP was driven by the Services sector which accelerated to 7.4 percent from 5.6 percent while Industry decelerated to 6.8 percent from 9.1 percent. On the other hand, Agriculture contracted by 0.3 percent from a growth of 4.2 percent in the previous year.
The fourth quarter growth paved the way for the economy to grow by 5.8 percent for the whole year of 2015 from 6.1 percent in 2014. Services was the main driver of the economy at 6.7 percent growth from 5.9 percent the previous year. Industry and the entire Agriculture both decelerated with 6.0 percent and 0.2 percent from 7.9 percent and 1.6 percent, respectively.
Meanwhile, Net Primary Income (NPI) from the Rest of the World grew by 5.4 percent in the fourth quarter of 2015 from 1.4 percent the same period last year, driving the Gross National Income (GNI) to post a growth of 6.2 percent from the previous year’s 5.7 percent.
On an annual basis, GNI slowed down to 5.4 percent in 2015 from 5.8 percent the previous year with the deceleration of NPI to 3.6 percent in 2015 from 4.1 percent in 2014.
Value of Production Index (VoPI) for total manufacturing significantly rose to 26.5 percent in January 2016 compared with the negative 1.1 percent in January 2015, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). This was brought about by the three-digit growth experienced by chemical products (309.6%), particularly for drugs and medicine sub-sector. Other major sectors that pulled up the performance of VoPI were tobacco products (49.6%), food manufacturing (19.1%) and beverages (11.7).
Volume of Production Index (VoPI) likewise posted 34.3 percent increment in January 2016 compared with 2.6 percent during the same period last year. Chemical products contributed significantly to the growth with 312.4 percent, followed by major sectors that registered two-digit growth in VoPI, namely: tobacco products (49.4%), machinery except electrical (23.6%), food manufacturing (20.2%), electrical machinery (19.2%) and beverages (10.1%).
Talamban Road, Cebu City 6000 Philippines