The economy exceeded forecasts by economists and the government as the Philippine Statistics Authority (PSA) reported a gross domestic product (GDP) growth of 7.7% in the fourth quarter of 2021, bringing the full year growth to 5.6%.
Bangko Sentral ng Pilipinas (BSP) Gov. Benjamin E. Diokno said these figures were higher than the median forecast of 6.5% for Q4 and 5.3% for full year 2021 made by 18 economists in a recent survey.
The BSP, for its part, estimated that the GDP could grow by 7.4% in Q4 and implied full-year growth of 5.6%.
“The actual 2021 GDP growth of 5.6% represents a sharp recovery from the 9.6% contraction in 2020, but lower than the 6.1% expansion in 2019. It exceeds the government’s revised forecast range of 5-5.5%, however,” Diokno said in a Twitter post.
In a press conference Thursday, Jan. 27, 2022, the PSA said the main contributors to the GDP growth in Q4 were: manufacturing, 7.2%; wholesale and retail trade; repair of motor vehicles and motorcycles, 7.4%; and construction, 18.5%.
The same industries also contributed the most to the annual growth: manufacturing, 8.6%; wholesale and retail trade; repair of motor vehicles and motorcycles, 4.3%; and construction, 9.8%.
All three sector posted positive growths in Q4: agriculture, forestry, and fishing, 1.4%; industry, 9.5%; and services, 7.9%.
For the entire year, industry and services registered positive growths of 8.2% and 5.3%, respectively, while the agriculture, forestry, and fishing sector posted a negative 0.3% growth.
On the demand side, the household final consumption expenditure (HFCE) grew by 7.5% in the fourth quarter of 2021.
The following items also recorded growths: government final consumption expenditure, 7.4%; gross capital formation, 12.6%; exports, 8.3%; and imports, 13.7%.
On an annual basis, HFCE grew by 4.2%, GFCE by 7%, GCF by 19%, exports by 7.8% and imports by 12.9%. (MTVI/Ventures Cebu)