DATA SNAP: Philippines 2Q GDP +1.5% On Yr; Mkt Expected +0.3%

Thu, Aug 27 2009, 02:24 GMT
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DATA SNAP: Philippines 2Q GDP +1.5% On Yr; Mkt Expected +0.3%

MANILA (Dow Jones)--The Philippine economy rebounded in the second quarter after a contraction in the first quarter, dodging recession on the back of stronger consumer spending and the continued resilience of the services and farm sectors.

The National Statistical Coordination Board said Thursday gross domestic product in the April-June quarter rose 1.5% on year, slower than the 4.2% expansion in the same quarter last year but quicker than the revised 0.6% growth in the first quarter.

Second quarter GDP rose 2.4% from the first quarter, when domestic output contracted a revised 2.1% from the fourth quarter.

The Philippine economy's performance in the second quarter mirrors the improvement around the region, where rates of contractions in most countries hit hard by the global credit crisis last year have decelerated.

The government projected second quarter GDP within a range of a 0.1% contraction and a 0.9% growth. The median forecast of 11 economists polled by Dow Jones Newswires, meantime, placed second quarter growth at 0.3% on year and 1.2% on quarter.

In the six months to June, GDP was up 1.0% on year, still within the government's full-year target of growth between 0.8% and 1.8%.

The services sector grew 3.1% on year in the second quarter while the farm sector's output in the April-June period rose 0.3% on year, offsetting the 0.3% on year contraction in industries.

Also in the second quarter, consumer spending rose 2.2% on year after growth slowed to 0.8% in the first quarter. Government spending increased 9.1% on year in the second quarter due to pump-priming activities.

-By Rhea Sandique-Carlos and Cris Larano, Dow Jones Newswires; 632-848-5051; cris.larano@dowjones.com

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