9-11-2023 (MANILA) A robust resurgence in the Philippine economy during the third quarter has invigorated hopes of achieving the targeted 6 per cent to 7 per cent growth for this year, according to the nation’s economic planning secretary.
Gross domestic product (GDP) exhibited a remarkable uptick, surging by 5.9 per cent in the third quarter compared to the same period last year. This impressive growth outpaced the earlier projection of 4.7 per cent in a Reuters poll. The key driver behind this encouraging expansion was the rejuvenation of government spending, which witnessed a substantial upswing of 6.7 per cent, effectively reversing the previous quarter’s 0.7 per cent decline.
Economic Planning Secretary Arsenio Balisacan expressed his optimism during a media briefing, stating, “We hope to maintain this momentum for the remainder of the year and the years to come.”
The third-quarter economic performance brought the cumulative growth for the period from January to September to 5.5 per cent. While this figure falls slightly short of the government’s 6 per cent to 7 per cent target for 2023, Balisacan remained resolute, affirming that the goal is “still doable” and well within reach.
Quarterly statistics were equally encouraging, with GDP expanding by 3.3 per cent, surpassing economists’ expectations of 2.0 per cent growth and representing a significant rebound from the 0.9 per cent contraction observed in the previous quarter.
However, Balisacan acknowledged that the spectre of inflation continues to loom large, exerting a dampening effect on household consumption, which registered a slower growth rate of 5.0 per cent in the July to September period compared to 5.5 per cent in the second quarter.
Balisacan commented on the matter, emphasizing the need for non-monetary measures to safeguard the purchasing power of Filipino citizens as a response to the challenge posed by high inflation.
In a positive development, annual inflation has exhibited a slowdown for the first time in three months, declining from 6.1 per cent the previous month to 4.9 per cent in October. Nevertheless, the central bank has expressed concerns regarding potential inflation risks on the horizon and has affirmed its readiness to implement further policy measures to control prices.
Having already delivered a 25 basis point interest rate increase in an off-cycle move on October 26, the central bank is set to convene on November 16 for a policy review, indicating its commitment to ensuring economic stability in the face of evolving circumstances.
