The Philippine economy rebounded with growth of 5.6 percent in the second quarter, defying a regional slowdown thanks to robust government spending, but faltering exports and deepening economic woes in China tempered the outlook.
While annual growth was the third-fastest in the region after China and Vietnam, and ahead of the 5.0 percent rate in the first quarter, the El Nino dry weather phenomenon posed a major downside risk for the Philippines, economic planning Secretary Arsenio Balisacan said.
A rebound in state infrastructure spending helped the economy grow 1.8 percent in April-June from the previous three months, slightly below the 2.0 percent forecast in a Reuters poll. Weak government spending has been blamed for declining growth in 2014 and in the first quarter of 2015.