MANILA, Philippines (Xinhua) – The gross domestic product (GDP) of the Philippines grew 7.9 percent in the second quarter of this year, the highest since 1988, the National Statistical Coordination Board (NSCB) said today.

The NSCB attributed the high GDP growth from the 1.2-percent in the same period last year to peaceful national elections, improved investors confidence especially among local investors, the global economic recovery and increased capital expenditure of government.

 Together with the GDP growth of 7.8 percent in the first quarter, the first semester grew to a 7.9 percent.

 "It the highest semestral growth since 1988" the NSCB said in a press briefing today.

The industry and services sector was the main driver of the economic growth for the second consecutive quarter. The manufacturing industry sustained its production from the first quarter due to the improved domestic and external demand. Construction, trade, and mining and quarrying also braced Manufacturing.

The continued inflow of compensation of our overseas workers sustained the net factor income from abroad (NFIA), but at a much lower growth of 7.7 percent from 30.4 percent last year, pulling GNP growth to 7.9 percent.

As the country's population reached an estimated 93.8 million, consumer spending grew at slower pace of 4.9 percent from 5.5 percent last year. Alongside this slow pace of consumer expenditure, the government consumption expenditure grew also at a slower pace of 5.6 percent from 11.9 percent.

Total exports soared to 27.4 percent while the total imports rebounded to 23.9 percent, resulting in a trade deficit of P10.9 billion ($242 million). The current trade deficit is 0.5 percent of the GNP compared to last year's surplus of 0.8 percent.

Total exports soared to 27.4 percent, the highest since the third quarter of 1986, from negative 18.0 percent last year as total merchandise exports rebounded while non-merchandise exports accelerated.

Total imports, meanwhile, rebounded to 23.9 percent from the negative 2.1 percent registered in the previous year.