Figure 1: Gross Domestic Product of the Philippines from 2010 to 2020
from the World Bank Organization
The Philippine economy grew 3.7 percent in 2011, less than half of the 7.6 percent growth rate seen
in 2010, according to government officials. The country managed to generate "feeble" growth despite
external economic problems, government underspending on infrastructure in the second and third quarters,
and a sustained decline in the fisheries subsector, according to Romulo A. Virola, secretary general of the
National Statistical Coordination Board (NSCB). According to the NSCB, the consequent drop in exports
was the biggest drag on the economy in 2011, lowering GDP growth by 2.2 percentage points.
Underspending on public infrastructure and weak government consumption (nonconstruction expenditures)
reduced GDP growth by around 0.7 percentage point and 0.1 percentage point, respectively.
In addition, the country's Gross Domestic Product (GDP) increased by 6.8% in the fourth quarter
of 2012, clearing the way for a broad-based growth of 6.6 percent for the full year. The robust performance
of the Services sector, driven by Trade and Real Estate, Renting & Business Activities, as well as significant
gains in Manufacturing and Construction, fueled the increase.
Also, despite the devastation caused by a series of earthquake and typhoons in the last quarter of
2013, the country's Gross Domestic Product (GDP) increased by 6.5 percent in the fourth quarter of 2013,
driven by the Services sector, particularly Trade and Real Estate, Renting & Business Activities, and the
accelerated performance of Manufacturing, paving the way for annual GDP growth of 7.2 percent.
On the other hand, the country's gross domestic product (GDP) surged to 6.9% in the fourth quarter
of last year, according to National Statistician Lisa Grace Bersales, powered by communications,
construction, manufacturing, real estate, and transportation, among other sectors. The ADB also lowered
the country's 2014 growth prediction to 6%, claiming that despite strong private consumption, stronger
private investment, and net exports, the country's GDP growth was hampered by insufficient state spending,
which contributed to the country's poor performance.
By 2015, the Philippine economy expanded by 5.2 percent in the first quarter of 2015, the slowest
pace in three years, as government spending remained weak and exports fell. Besides, in the fourth quarter
of 2015 saw the biggest quarterly growth of the year, at 6.3 percent. However, the rate of increase is lower
than the 6.6 percent recorded in the same period last year. The Services sector increased to 7.4 percent from
5.6 percent in the fourth quarter, while Industry decelerated to 6.8 percent from 9.1 percent. Agriculture,
on the other hand, shrank by 0.3 percent after growing by 4.2 percent the previous year.
Furthermore, in the fourth quarter of 2016, the economy grew by 6.6 percent, bringing the total
year's growth to 6.8 percent. The fourth quarter saw the smallest growth of the year, but it was still greater
than the 6.5 percent growth seen in the fourth quarter of 2015. The key drivers of growth for the quarter
were manufacturing, trade, and real estate, renting, and business activities. Industry grew at the fastest rate
among the major economic sectors, at 7.6%, up from 6.5 percent the previous year. In the fourth quarter of
2015, services grew at a slower pace of 7.4%, compared to 7.8% in the previous quarter. Agriculture, on
the other hand, dropped by 1.1 percent. It fell by 0.2 percent compared to the same period the previous year.
Moreover, Philippines’ GDP increased by 6.6 percent in the fourth quarter of 2017, propelling the
economy to 6.7 percent growth for the year. The key drivers of growth in the fourth quarter were
manufacturing, trade, and real estate, renting, and business activities. Industry expanded at the fastest rate
of 7.3 percent among the key economic sectors in the fourth quarter of 2017, followed by Services, which
grew at a rate of 6.8 percent. Agriculture increased by 2.4 percent, rebounding from a 1.3 percent drop in
the previous quarter.
Correspondingly, GDP increased by 6.1 percent in the fourth quarter of 2018, culminating in a 6.2
percent year-over-year increase. Construction, trade and repair of motor vehicles, motorcycles, personal
and household goods, and other services were the key drivers of growth for the quarter. Industry grew at
the quickest rate among the major economic sectors in the fourth quarter of 2018, at 6.9%. Then came
Services, which increased by 6.3 percent, and Agriculture, which increased by 1.7 percent.
Even more, the fourth quarter of 2019 saw a 6.4 percent year-over-year increase in GDP, resulting
in a 5.9 percent year-over-year increase for 2019. The main drivers of growth in the fourth quarter of 2019
were trade and repair of motor vehicles, motorcycles, personal and household goods, manufacturing, and
construction. Services grew at the quickest rate among the major economic sectors in the fourth quarter of
2019, at 7.9%. Industry expanded at a rate of 5.4 percent. Agriculture, hunting, forestry, and fishing all saw
a 1.5 percent increase.
According to the data from the Philippine Statistics Authority, Philippine’s Gross Domestic
Product (GDP) growth rate decreased by 16.5% during the second quarter of 2020. It is considered as the
lowest recorded quarterly growth rate since 1981. Manufacturing decreased by 21.3%, Construction
decreased by 33.5%, and Transportation and Storage decreased 59.2%. Only Agriculture, Forestry, and
Fishing grew by 1.6% among the major economic sectors. Industry and services both fell by 22.9% and
15.8%, respectively, throughout the second quarter of 2020. The sudden drop of the GDP growth rate is
due to the heavy lockdown imposed by the government as a safety precaution for spread of Coronavirus
disease (COVID-19) caused by the SARS-CoV-2 virus.
References
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GDP posts 6.4 percent growth in the fourth quarter of 2019; 5.9 percent for full-year 2019 |
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