Philippine economy expands 6.6% in fourth quarter 2017

The Philippine economy grew by 6.6 percent in the fourth quarter, driven mainly by the industry sector to lift the full-year economic growth to 6.7 percent, the Philippine Statistics Authority (PSA) reported on Tuesday.

In a press conference in Pasig City, National Statistician Lisa Grace Bersales noted the gross domestic product (GDP) was driven mainly by the industry sector which grew by 7.3 percent in October to December.

This compares with the upwardly revised 7.0 percent GDP growth in the third quarter of 2017 and 6.6 percent in the fourth quarter of 2016.

The fourth quarter GDP results fall within the 6.7- to 6.9-percent forecast of Socioeconomic Planning Secretary Ernesto Pernia for the full-year 2017.

“Among the major economic sectors during the fourth quarter of 2017, industry had the fastest growth of 7.3 percent, followed by services which grew 6.8 percent,” Bernales said.

The agriculture sector grew by 2.4 percent during the quarter, an improvement from a 1.3-percent contraction in October to December of 2016.

The GDP is a measure of the goods and services produced by a country in a given period.

“Growth in the fourth quarter was backed by robust growth of 14.3 percent in public spending—that was really the main driver, public spending—which was an increase from 4.5 percent in the previous year,” Pernia noted.

“This is very much in line with the government’s commitment to timely delivery of public services and social protection programs, including assistance to victims of typhoons as well as in the Marawi conflict, public scholarship programs, and health expenditure programs,” he said.

The knee-jerk reaction of the equities and foreign exchange markets to the fourth quarter GDP results was negative.

The peso depreciated in early trading to touch the P51-$1 level and share prices on Philippine Stock Exchange were mixed during the morning trade.

However, Pernia said the latest GDP numbers figures bode well for 2018. “With these developments, we move forward in 2018 with even stronger determination to accelerate growth, to hit our target range of 7 to 8 percent, he said.

“We are, of course, coming from the steady growth streak of 6.9 percent for full-year 2016 and 6.7 percent in 2017. Both are well within our growth range targets,” Pernia noted.

“For 2016 and 2017, economic growth has been strong and steady. Our hope for 2018 and in the medium-term is to shift the trajectory upwards some more,” he added. —VDS, GMA News