Aug 27, 2009, 4:36 GMT
Manila - The Philippine economy grew 1.5 per cent in the second quarter of 2009 as public spending helped avoid a projected contraction, the government said Thursday.
While the gross domestic product (GDP) growth in second quarter was down from 4.2 per cent a year ago, it was better than the revised 0.6 per cent in the first quarter of 2009.
'The government economic resiliency plan resuscitated the domestic economy during the second quarter,' said Romulo Virola, secretary general of the National Statistical Coordination Board.
Virola added that quarter-to-quarter GDP growth recovered in the April-June period, 'effectively avoiding the recession that had threatened' when growth slumped in the January-March quarter.
He said the economy benefited from the government's 'reinvigorated' spending on construction and services in the second quarter.
The services sector also helped boost the economy, expanding 3.1 per cent. Agriculture grew 0.3 per cent, while industry contracted by 0.3 per cent for the second straight quarter.
Gross national product, which includes income from abroad, expanded 4.4 per cent in the second quarter, up from 3.1 per cent in the first quarter but down 5.3 per cent year-on-year.
The first quarter data brought GDP growth in the first half of 2009 to 1 per cent, down from 4 per cent a year ago. First-semester GNP growth was 3.8 per cent, compared to 5.8 per cent in 2009.
Socio-Economic Planning Secretary Augusto Santos said the Philippines was one of the few economies enjoying positive GDP growth rates in the second quarter of 2009.
'The development occurred amidst signals that the global economic recovery was underway, with some industrialized countries already exiting their recessions,' he said.
Santos said the economy was 'expected to remain afloat, far from an economic recession' as the government continues efforts to mitigate the remaining impact of the crisis.
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