PHILIPPINES' ECONOMY EXPANDED 5.2 PERCENT IN THE THIRD QUARTER

Philippines GDP growth expanded 5.2 percent in third quarter as weather disruptions bites that obstruct various sectors (Photo courtesy of Grig Montegrande/Inquirer)

The Philippine Statistics Authority (PSA) reported that the Philippines' gross domestic product expanded 5.2 percent in the third quarter, sharply slower than the revised 6.4 percent growth in the previous quarter.

The PSA said this is mainly due to weather disruptions which hampered various sectors, bringing  the average gross domestic product growth (GDP) for the first three quarters of 2024 to 5.8% which is slightly below the government’s target of 6% to 7% for the year.

Marking the lowest expansion since the 4.3 percent in the second quarter last year. PSA chief and National Statistician Claire Dennis Mapa, the total value of goods and services produced in a period or GDP grew by 5.2%, with the services sector posting highest contribution with 4.1%.

Major industries and services in the country posted growth of 5% and 6.3%, respectively, while the AFF recorded a -2.8% growth rate. In terms of demand, household final consumption accelerated by 5.1 percent.

To achieve the Marcos administration’s growth target, the economy needs to grow by 6.5 percent more in the last quarter of the year according to National Economic and Development Authority Secretary Arsenio Baliscan said.

“We anticipate increases in holiday spending, more stable commodity prices, lower interest rates, and a robust labor market. In the areas affected by typhoons, recovery efforts will drive economic activity and, hopefully, build back better,” he said.

“Due to easing inflation, consumer and business sentiments have shown signs of improvement. To boost liquidity, the Bangko Sentral ng Pilipinas cut policy rates by a cumulative 50 basis points in August and October 2024, alongside a reduction in reserve requirements. We expect these interventions to spur growth in private spending, particularly on big-ticket consumer items and investments in capital-intensive infrastructure,” he added.

Balisacan said the Philippines remains one of the fastest-growing economies in Asia. "We follow Vietnam which posted a 7.4% growth rate, and are ahead of Indonesia (with 4.9%), China (4.6%), and Singapore (4.1%).”

Source: Philippine Daily Inquirer 

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