Tuesday, November 27, 2012

Philippine economy said to have expanded by 5.5% in Q3

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The Philippine economy is estimated to have expanded by 5.5 percent in the third quarter due to greater government spending, rise in household consumption, and increase in investments to the services sector, according to Moody’s Analytics.


In a report released Tuesday, Moody’s Analytics said the domestic economy’s strong performance enabled the country to endure the financial problems now upsetting the rest of the world.


“Despite a weak global environment, the Philippine economy likely grew by 5.5 percent year on year in the third quarter. Foreign investment and government spending are offsetting weakness in foreign demand,” wrote economist Katrina Ell of Moody’s Analytics.


Given the 5.5-percent estimated growth for the third quarter, the Philippines could end 2012 with a 5.9 percent rise in GDP [gross domestic product].


In the first semester, growth averaged at 6.1 percent.


The government’s full-year growth target has been set between 5 and 6 percent.


But Moody’s latest growth estimate marks a slowdown from the actual figures of the previous quarters—6.3 percent for the first, and 5.9 percent for the second.


“The often volatile agriculture sector took a hit in the third quarter as bad weather caused significant damage to crops,” Ell said.


Still, she added, bad weather and sluggish export performance were not sufficient to cause a substantial slowdown, due to growth in remittances that fuel household consumption.


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Tags: economy , forecasts , Philippines



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