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Economic growth picks up to 6.2% in Q3
Philippine economic growth picked up to 6.2% in the third quarter, an improvement from the slowdown recorded during the first two quarters of the year, data released by the Philippine Statistics Authority (PSA) on Thursday revealed.
The latest figure compares with the second quarter's 5.5%, and the 6.0% in the third quarter of 2018.
Among the major economic sectors, services posted the fastest growth with 6.9%, followed by industry with 5.6%, and agriculture with 3.1%.
"The stronger growth in public spending in the third quarter contributed significantly to our Q3 performance," Socioeconomic Planning Secretary Ernesto Pernia said at a press conference in Pasig City.
This comes as the government blamed the reenacted budget for the slowdown of economic growth in the first two quarters of the year.
"Government is committed to speeding up the implementation of its programs and projects that were affected by the budget impasse and the election ban earlier this year," said Pernia.
The increased spending, he noted, was due to implementation of projects of the Department of Public Works and Highways (DPWH) and the Department of Transportation (DOTr).
"The biggest spending is really DPWH and we had planned earlier to really do catch-up spending so it seems to have worked," Pernia said.
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With the latest figures, Pernia said the Philippines is likely to have registered the second-highest economic growth in region behind Vietnam's 7.3%.
"Compared with other major emerging market economies in the region that have already released their Q3 2019 GDP numbers, the Philippines likely ranked second," he said.
China reported a 6.0% growth, Indonesia with 5.0%, and India with an expected growth of 6.0%.
Moving forward, Pernia said the economy will have to grow by at least 6.7% to meet the lower range of the government's already downward revised full-year target range of 6.0% to 7.0%.
"Very achievable. We have seen the economy surging and the momentum will continue for us to reach (the target)," he explained.
"In the near term, we expect the agriculture sector to gain momentum on the back of relatively favorable weather conditions. The El Niño-neutral situation is likely to continue and only fewer typhoons are expected to occur until April 2020," added Pernia.
He noted, however, that among the downside risks to growth in the fourth quarter is the ongoing trade tensions between China and the United States.
"The trade tensions, the trade war between the US and China is really the biggest risk not just for the Philippines but for the global economy," said Pernia.
For his part, Presidential Communications Secretary Martin Andanar said the administration would continue “to foster an environment primed for investments, and reduce the remaining corruption and red tape in government agencies.”
Andanar also said the government would continue “to boost investment roadshows and promote the Philippines' favorable economic climate to attract investors both foreign and domestic.”
“These effective economic reforms introduced by President Rodrigo Roa Duterte will ensure that the Filipino people have a comfortable life for the medium and long term,” the Palace official said. — with Virgil Lopez/RSJ, GMA News
