From Nikkei Asia, August 8:
Double-digit rise in government spending pushes Q2 growth to fastest in 5 quarters
The Philippines' gross domestic product expanded by 6.3% in the second quarter as the government lifted spending, but headwinds such as inflation remain.
Second-quarter GDP beat the 6.2% growth forecast in a Reuters poll of economists and was quicker than the 5.8% expansion in the first quarter of the year.
Among the components that make up the overall GDP figures, government expenditure grew 10.7% on the year thanks to ambitious infrastructure projects, defense equipment upgrades and preparations for the upcoming 2025 midterm polls.
Household spending, which accounts for 70% to 80% of GDP, increased just 4.6% year-on-year in the second quarter.
Despite the fastest quarterly growth rate in the last five quarters, Socioeconomic Planning Secretary Arsenio Balisacan told reporters on Thursday that household spending in the period was "anemic," adding that "growth is not as strong as one would expect" as consumers feel delayed effects from interest rate hikes and high inflation....
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