Recent findings from the Philippine Statistics Authority (PSA) indicate that with the 6.4 percent economic growth posted by the country, it is now the second fastest-growing country in Asia, along with Malaysia. China posted the fastest economic growth rate.
The growth figures are higher than 2014 Q1ís 5.6 percent, but lower than 7.9 percent last year.
According to interim Deputy National Statistician Secretary Romeo Recide, economic growth during Q2 was widely driven by the services sector accounting for 3.5 percent of the growth, the industry segment represents 2.5 percent, while agriculture takes up 0.3 percent. Socioeconomic Secretary Arsenio Balisacan said the country is still one of the preferred destinations in the region.
However, the governmentís 6.5 to 7.5 percent gross domestic product (GDP) target for Q2 was not achieved. This comes right after the minor revisions applied to the figures posted in Q1 (5.7 percent) because of the slower contributions from transportation, storage, and communication, mining and quarrying, and financial intermediation, as well as the remaining effects of super typhoon Haiyan late last year.
Meanwhile, investors at the Philippine Stock Exchange are starting to worry about the poor performance of Q2, saying it is lower than the 7.9 percent documented last year.
According to DA Market Securities Inc., a GDP that is lower than 5.7 percent is considered weak, outcome in the range of 5.7 to 6 percent could mean it is improving but is still upsetting, and a result above six percent will be more acceptable and taken as a solid performance for a period.