Statement of Finance Secretary Cesar V. Purisima on the Q1 2015 GDP Growth
“The economy grew by 5.2% in the first quarter (Q1) of 2015, keeping the Aquino administration’s quarterly average at 6% growth. The Philippines is the second-fastest growing ASEAN-5 economy in Q1, second only to Malaysia (5.6%). Among all Asian countries that have released their growth rates, the Philippines stands next to China (7.0%), Vietnam (6.0%), and Malaysia (5.6%). This rounds out 13 straight quarters of above 5% growth in what is now 65 straight quarters of growth since the 1997 Asian financial crisis.
The positive trend lines we have experienced in the last 5 years held fast this quarter on the back of a strong showing from the private sector. Consumer sentiment is upbeat with consumption growth at 5.4%, capital formation at 11.8%, and fixed capital formation at 10.1%.
Private sector momentum reflects the increasing appetite to invest in the medium to long term growth of the country. Notably, growth in private construction accelerated as developers continue to expand to various provinces on the back of strong demand. Increased confidence in the Philippines is a clear result of President Aquino’s unwavering commitment to good governance is good economics.
Public spending continues to pick up at 4.8% on the back of government efforts to close the gap. These are elements largely within our control; these are opportunities we intend to capitalize on in the next quarters.
Numbers fluctuate each quarter but they clearly show an unmistakable positive trajectory. We are less concerned about the quarterly numbers game than getting the foundations of our growth right.
Thus, we are committed to spending right, following President Aquino’s 5 Rs – the right project with the right quality, right people, right time, and the right cost. It is not always easy or fast, but growing with the right foundations makes our trajectory more sustainable. We are cognizant of the opportunities ahead and will resolve to boost government capacity to spend at the right pace.
This kind of commitment pays off: we have been recognized by international experts and multilateral institutions as one of the most stable engines of growth in Asia with solid macroeconomic fundamentals. In 2014, we posted our highest current account surplus since 2007, at $12.6 billion. The deficit is contained and inflation is well-managed within target. These are crucial elements that feed into the virtuous cycle that drives our sustained growth.”
