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NEWS UPDATES 16 August 2009

Philippine agric sector hit by decline in crop output

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Farm output in the Philippines, which makes up a fifth of the country’s economy, drastically dropped in the second quarter of the year owing to a continued contraction in crops output, GMA news reported.

The Agriculture department on Friday announced that the fisheries and farming sector posted a nearly flat growth of 0.87 percent in the April to June period from 5.5 percent it registered in the same period in 2008. The second-quarter performance was also far below the government’s revised assumption of a three-percent growth in the farming sector for this year.

In the year’s first quarter, which saw the country’s economy growing by a measly 0.4 percent, the slowest in a decade, farm output grew by 2.27 percent. Manila is banking on a 0.8 percent to 1.8-percent growth in the economy for this year.

The dismal performance of crops sub-sector, representing half of the country’s farm output at 51.23 percent , dragged down the performance of agriculture in the second quarter. Crops posted an output contraction of 3.61 percent from the 9.73-percent improvement it had in the second quarter of last year.


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