empty
 
 

2019.11.0702:52:00UTC+00Philippine GDP Growth Accelerates On Govt Spending

The Philippine economy logged a faster-than-expected growth in the third quarter driven by government spending, data from the Philippine Statistics Authority revealed Thursday.

Gross domestic product grew 6.2 percent year-on-year, faster than the 5.5 percent expansion in the second quarter and the expected pace of 6 percent. This was the fastest growth seen this year.

On a quarterly basis, the economy expanded 1.6 percent in the third quarter.

Economic Planning Secretary Ernesto Pernia said the economy needs to grow 6.7 percent in the fourth quarter to achieve the government's full year target of 6-7 percent growth.

The production-side showed that the service sector logged the fastest growth in the third quarter, up 6.9 percent. At the same time, industry and farm sectors advanced 5.6 percent and 3.1 percent, respectively.

On the expenditure side, government expenditure surged 9.6 percent and household spending grew 5.9 percent. Meanwhile, gross fixed capital formation fell 2.1 percent. Exports rose 0.2 percent, while imports remained flat in the third quarter. The jump in growth will probably edge up again next quarter but this is unlikely to mark the start of a sustained rebound in growth, Alex Holmes, an economist at Capital Economics, said.

The economy is expected to grow 6 percent next year, which would be well short of the government's target of 6.5-7.5 percent, Holmes noted.

Nonetheless, he said consumption should continue to grow at a decent rate and recent monetary policy loosening should provide a boost to the economy.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback