Economy grows at faster pace in Q2
It grew 4.4% from 3.8% in Q1.
The economy grew at a faster pace in Q2, clocking in at 4.4% YoY, data from the Ministry of Trade and Industry (MTI) showed. In Q1, the GDP grew by 3.8% YoY.
On a quarter-on-quarter basis, however, GDP contracted slightly by 0.2%.
According to the MTI, the faster economic growth was on the back of expansions across major sectors, led by the food and beverages sector which accelerated to 28.0% YoY from 1.9% YoY in Q1.
“ All segments within the sector expanded, with activity supported by the lifting of most domestic restrictions such as dine-in group size limits since end-April 2022. In particular, food caterers and restaurants experienced the largest increase in sales volumes, partly due to the low base last year arising from the implementation of P2HA measures,” the MTI said.
Behind the F&B services sector were the real estate, retail, administrative and support services, and manufacturing sectors which grew by 11.7% YoY, 11.5% YoY, 9.2% YoY, and 5.7% YoY, respectively.
MTI said the real estate sector grew on the back of a “stronger performance of the private residential property segment, as well as the commercial office and industrial property segments in tandem with the continued economic recovery.”
Meanwhile, the manufacturing sector was supported by output expansions in the transport engineering, general manufacturing, electronics and precision engineering clusters; and the growth in the retail sector was anchored by the increase in non-motor vehicle sales volume.
The transportation and storage, construction, finance & insurance, wholesale, and other services sectors likewise picked up during the quarter, growing 5.1% YoY, 3.3% YoY, 1.9% YoY, and 5.7% YoY, respectively.
Although moderated, the information and communications (8.1% YoY vs 10.1 YoY) and finance & insurance (1.6% YoY vs 3.7% YoY) sectors also grew during Q2.
The accommodation sector, on the other hand, contracted anew (-5.3% YoY) due to the decline in government demand for quarantine and stay-home-notice dedicated facilities.