Philippine economy grows by 6.1% in 2014


• The National Income Accounts (Gross Domestic Product and Gross National Income) is one of the major macroeconomic statistics compiled and disseminated by the Philippine Statistics Authority, to provide information about the performance of the Philippine economy as basis for economic analysis and policy formulation.

• For the Fourth Quarter of 2014, the country’s Gross Domestic Product (GDP) accelerated to 6.9 percent from 6.3 percent in the same period of last year. This followed three consecutive quarters of decelerated growth. The robust performance of Industry sector particularly by Manufacturing and Construction and supported by the Trade, Real Estate, Renting & Business Activities, and Transport, Storage & Communication, boosted the fourth quarter performance and paved the way for the annual GDP to post a growth of 6.1 percent.

• On the demand side, Household Final Consumption Expenditure (HFCE) together with the sustained investments in Fixed Capital Formation and the remarkable performance of external trade all contributed to the healthy growth of the economy in the fourth quarter and for the full year 2014.

• On an annual basis, Gross National Income (GNI) slowed down to 6.3 percent in 2014 from 7.5 percent the previous year with the deceleration of Net Primary Income (NPI) to 7.3 percent in 2014 from 9.0 percent in 2013. For the fourth quarter, GNI decelerated to 6.3 percent in 2014 from the previous year’s 7.2 percent with the slowdown of NPI by 2.8 percent from a double digit growth of 12.3 percent the previous year.

• From the third to the fourth quarter of 2014, seasonally adjusted GNI grew by 2.3 percent compared to the 0.6 percent growth in Q3 201. Seasonally adjusted GDP accelerated to 2.5 percent from 0.7 percent in the previous period. Agriculture rebounded to 6.0 percent from negative 3.0 percent; while both the Industry and Services sectors accelerated to 3.6 percent and 1.3 percent respectively, from a growth of 1.1 percent recorded by both sectors in the previous quarter of 2014.