GDP grows 6.3% in 2015 despite decline in agri, fishery and forestry
The Philippines’ domestic output grew higher in 2015 despite the decline in the agriculture, fishery and forestry sector, the Philippine Statistical Authority reported today.
Gross domestic product grew by 6.3 percent in 2015, higher than the 6.1 percent reported in 2014 but lower than the seven to eight percent government had targeted. It is also higher than the 6.2 percent forecast of the International Monetary Fund.
At current prices, the agriculture, fishery and forestry sector fell by 5.1 percent, bringing down the growth in GDP at current prices to 5.2 percent. Rubber production reported the biggest decline at 28.4 percent, followed by palay which reported a 17.5-percent drop. Cassava production fell by 12.6 percent, corn production, decreased by 8.2 percent, coconut production shrunk by 8 percent and coffee production dipped by 0.6 percent at current prices. Forestry fell by 12.7 percent while fishing inched down by 0.8 percent.
At constant prices, the agriculture, hunting and forestry sector climbed by 0.7 percent, with poultry and livestock production making up for the declines in palay and corn. Livestock production grew by 3.8 percent in 2015 while poultry production expanded by 5.7 percent. Fishing inched up by 1.8 percent.
The agriculture, hunting, forestry and fishery sector accounts for 10 percent of the country’s domestic output. However, a bigger proportion of the population rely on it, especially in the rural areas.
During its Article IV consultation last year, the IMF warned of downside risks to its outlook that including El Nino which threatens to lead to poor harvests and a rapid increase in food prices.
“This could induce inflation to rise sharply and breach the target band, affecting the poor quite severely,” the IMF warned during the consultation in September 2015. (By: Eileen A. Mencias)