Good growth numbers hiding troubling fundamentals

DATA for the Philippines' second-quarter (Q2) economic performance was released by the Philippine Statistical Authority (PSA) last Thursday, and showed that gross domestic product (GDP) grew by 6.3 percent year on year in the April-July period. This was better than the 6.0-percent consensus expectation and was properly characterized by the government's economic experts as confirmation that the economy is on the right track. However, there are signs that the momentum could be lost if fundamental indicators such as consumer spending and agricultural output are not aggressively addressed.