Department of Agriculture (DA) Secretary Emmanuel Piñol.

The country’s domestic output measured as the gross domestic product (GDP) slowed in the December quarter of 2018 to only 6.1 percent from a year earlier when this averaged 6.6 percent.

“The Philippine economy grew 6.1 percent in the fourth quarter of 2018, [bringing] a 6.2 percent growth for full year” of 2018, said Socio-economic Planning Secretary Ernesto Pernia.

“This was the seventh consecutive year that the Philippine economy sustained its growth of more than 6 percent,” Pernia added.

The country’s performance in a year marked by a massive buildup of public infrastructure, an ostensibly carefully recalibrated tax regime that puts more money in the working Filipinos’ pockets and reforms in the disbursement of public funds proved lower than the declared 6.5 percent to 6.9 percent target growth.

Likewise, the actual 6.1 percent growth print fell short of consensus growth averaging 6.3 percent.

Data from the Philippine Statistics Authority (PSA) show main drivers for the December quarter were construction, trade and repair of motor vehicles, motorcycles, personal and household goods and other services.

“Among the major economic sectors during the fourth quarter of 2018, industry had the fastest growth with 6.9 percent followed by services, which grew by 6.3 percent and agriculture by 1.7 percent,” the PSA said.

Despite its expansion in the October-to-December quarter, the agriculture sector once again proved a major disappointment, according to Pernia, as the sector grew by only 1.8 percent.

“Several factors behind the slowdown, but I would highlight the performance of agriculture. The drop from 4 percent last year to 0.8 percent is a major debacle for the sector,” Pernia said in a subsequent post on Twitter.

Agriculture output under Secretary Emmanuel Piñol had been such that even President Duterte himself acknowledged the portfolio as his weakest.

As a result, agriculture grew by a measly 0.56 percent in 2018, the PSA said.

Pernia said elevated price pressures in the quarter prior, particularly that on food, helped slow the country’s economic performance.

“We have high inflation rates last year, especially in the third quarter to the fourth quarter (2018). Inflation tempers both household and government spending because of high prices,” he said.

On a quarterly basis, household consumption in the fourth quarter of 2018 grew 1.7 percent, a turnaround from 0.9 percent in the third quarter.

The country’s net primary income (NPI) in the fourth quarter grew by 0.9 percent, bringing the gross national income to 5.2 percent.

On a yearly basis, GNI grew by 5.8 percent while the NPI grew by only 3.7 percent.