Philippine Q3 economic growth slower than expected but still one of fastest

The agriculture sector also recovered during the period by 0.4 percent from a 2.6 percent decline posted a year ago.

“This growth trajectory we are seeing will likely to continue in the fourth quarter as we expect domestic demand to still pick up during the holiday season”.

The gross domestic product data released Thursday supports views the central bank will keep its interest rates policy unchanged for now as growth holds up in the face of slowing global demand.

6% growth in third quarter just behind China’s 6.9% and Vietnam’s 6.8%.

On the supply side, growth was driven by the services sector, which grew by 7.3 percent, he said.

At the press conference, the PSA said Filipino households increased their spending in the third quarter mostly on food and non-alcoholic beverages, miscellaneous goods and services, transport, restaurants and hotels, and communication, it added.

This was higher than the second quarter’s 5.8 percent and the 5.5 percent recorded in the third quarter of 2014.

Quarter-on-quarter, economic growth slowed to 1.1 percent from 2 percent in the previous quarter.

But the growth was slower than expected, as risks from a leadership change next year and the El Niño dry spell loomed. “Clearly the outcome of national election will have an impact on the economy”, Balisacan said.

Gross domestic product expanded 6 percent, compared with 5 percent and 5.8 percent in the first two quarters, respectively, the Philippine Statistics Authority said.

The forecast for Philippines’ paddy output in the coming months is “better than what we initially estimated”, said Economic Planning Secretary Arsenio M. Balisacan, who heads the government’s food security council. “Moreover, the services sector will remain strong and investments are likely to go up due to the expected increase in disbursements”, he said.

Growth for the first nine months of the year now stands at at 5.6 percent.

Balisacan said risks to growth remain, particularly from a protracted El Nino weather pattern, and political uncertainty ahead the country’s national election in May as investors hold expansion plans until after a new government is in place. “This makes the Philippines one of the fastest-growing major Asian economies”, Balisacan said.

Coloma said Aquino is firmly committed to achieve inclusive growth through continuing investments in public infrastructure and human capital development anchored upon good governance.