MANILA — The Philippine economy showed improvement, growing by 5.9% in the third quarter, surpassing expectations. This was attributed to increased government spending, contributing to a rebound from the slower growth in the second quarter. While lower than the previous year, the result exceeded economists’ forecasts. All economic sectors, including services, industry, and agriculture, contributed positively.
Key contributors to growth were wholesale and retail trade, financial activities, and construction. Household spending increased by 5.0%, and government spending and exports also saw growth. However, gross capital formation and imports decreased.
The Socioeconomic Planning Secretary highlighted the broad-based nature of the growth, positioning the Philippine economy as the fastest among major Asian emerging economies in the third quarter. Comparison with other countries’ growth rates was provided, with optimism expressed about maintaining momentum.
There was a cautionary note on achieving the full-year growth target of 6.0-7.0%, suggesting the economy would need to grow by 7.2% in the last three months of the year. Challenges included a slowdown in household spending due to inflation and a decline in gross capital formation.
Public spending played a significant role in the positive economic performance, with a notable acceleration in construction. The government emphasized ongoing support for agriculture, particularly in addressing the potential impact of the El Niño weather pattern.
In summary, the Philippine economy showed improvement in the third quarter, driven by increased government spending and positive contributions from various sectors. Challenges such as inflation and the need for continued support for agriculture were acknowledged, but overall, there was optimism about sustaining economic momentum.
(ai/mnm)