surges, boosting GDP contributions by 22.4% in Q3 2017 - Lopez
November 17, 2017
MAKATI – “The
Philippine economy smashed expectations to post a 6.9% growth as a
robust manufacturing industry expanded by 9.4% and increased its
share to GDP by 22.4% in the third quarter of 2017,” Secretary Ramon
M. Lopez of the Department of Trade Industry stated.
“This economic feat is
creating meaningful and well-paying jobs for our people and
providing a compelling environment for business to thrive. This is
what the Department’s Trabaho at Negosyo thrust is all about,” the
The growth was one of the
fastest in the region, outpacing other Asian countries, such as
China (6.8%), Malaysia (5.8%), and Singapore (4.6%).
The services sector
accounted for the highest share to GDP at 58.9%, followed by the
industry sector (33.3%), and agriculture sector (7.5%).
Manufacturing accounted for 69% of the total output of industry.
Among the three economic
sectors, industry accelerated the fastest at 7.5%, while the
services and agriculture sectors grew by 7.1% and 2.5%,
“We are closing in on our
minimum target of growing the manufacturing industry to 25% of the
country’s GDP. The Department remains relentless in our efforts to
revive our factories, expand production, generate employment, and
enable industry to provide the catalyst that will build the seamless
link between a productive agriculture and a strong services sector,”
Secretary Lopez added.
Food Manufactures, Top
Food manufactures remained
the main contributor with 23.6% of total gross value added (GVA) in
manufacturing, followed by the manufacture of radio, television and
communication equipment and apparatus with 18.6%, and chemical and
chemical products with 15.9%.
Manufactures of fabricated
metal products posted the fastest growth at 66.8%, followed by
furniture and fixture (32.3%), and office, accounting and computing
Retail Trade, Top Services
The GVA of retail trade
sector in trade and repair recorded a 6.9% increase in the third
quarter of 2017. This was followed by wholesale trade (6.3%), and
maintenance and repair of motor vehicles, motorcycles, personal and
household goods (5.5%).
Secretary Lopez added that
to enable retail trade to realize its full potential as a main
contributor to the economy, the Department is supporting the
proposed relaxation of foreign equity restrictions, particularly
setting of a lower minimum paid-up capital for retail trade
enterprises (from US$2,500,000 to US$200,000). This will spur
investments into the country, stimulate economic growth, and create
more quality jobs for the Filipinos.
Electronic products, Top
Exports of goods have been
growing steadily in 2017, rising by 22.8% and allowing the sector to
contribute 54.0% to total GDP in Q3 2017. Electronic products, the
country’s top merchandise export, increased by 24.0%, accounted for
bulk of total PH export of goods at 63.4%, and contributed 34.2% to
the country’s GDP.
Resurgence through Innovation
“That efforts of the
Department to expand exports, increase investments are finally
bearing fruit is also due largely to the private sector’s support,”
Secretary Lopez noted. “It is through the concerted efforts of
Government and the Private Sector that an environment conducive to
manufacturing and industry development can be created,” he added.
Under the Manufacturing
Resurgence Program, the Department in collaboration with business
and industry champions have finalized 36 industry roadmaps that will
pave the way for the development of priority industries.
“We are moving towards the
next phase of MRP where strong linkages between large industries and
MSMEs will be fostered. The challenge is to sustain the growth and
trickle down the effect to smaller industries,” Secretary Lopez
Secretary Lopez also
emphasized the importance of innovation in sustaining manufacturing
resurgence. “We are constantly reviewing our industrial strategy, as
we enter the fourth industrial revolution. We are focusing our
efforts towards innovation through the inclusive innovation
industrial strategy or i3S.”
“This will entail training
and upgrading the capability of our people, developing our own or
adapting available technologies, and striving towards operational
efficiency, to enable us to meet global demands and opportunities
and enter a level of inclusive economic growth driven by
innovation,” he added.