Philippine Statistics Authority revises Q1 growth to 8.2%

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The Philippine economy expanded at a slightly slower pace of 8.2 percent in the first quarter, the Philippine Statistics Authority (PSA) reported yesterday.

The PSA said the country's gross domestic product (GDP), a measure of economic output, grew by a revised 8.2 percent from January to March.

This is slightly lower than the earlier growth figure of 8.3 percent reported in May.

GDP adjustments are regularly done as a consideration to the late release or updates of some pertinent data. It is also consistent with international standard practices on national accounts revisions.

The government will announce the second quarter economic performance today.

Market consensus expects an 8.4 percent GDP growth from April to June.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the slight downward revision could be attributed to the Russia-Ukraine war that led to the sharp increase in the global prices of oil and other commodities.

This has resulted in higher inflation and interest rates that both dragged the growth in many local businesses and industries, such as manufacturing, real estate, and wholesale trade.

'The weaker peso exchange rate also added to import costs and overall inflation that also partly dragged on the growth of some local industries,' Ricafort said.

Likewise, Ricafort said the Omicron surge in January partly slowed down growth following temporary restrictions that were eventually eased, allowing the economy to still rebound strongly.

According to PSA, the major contributor to the revision was real estate and ownership from 7.9 percent to 5.9 percent.

Manufacturing also went down to 9.8 percent from the previously reported 10.1 percent. The same with wholesale and retail trade at seven percent from a 7.3 percent hike reported in May.

Net primary income from the rest of the world was revised upward to 105.4 percent while gross national income saw downward revision to 10.6 percent.