Philippines GDP Gains 6.0% On Year In Q3

But he acknowledged that some risks still remain that may impede growth potential.

A preliminary PSA report released Wednesday showed that the value of shipments that entered the country in September rose 6.7 percent to $6.2 billion from $5.9 billion a year ago. Yields and harvests for palay and sugarcane were most affected due to inadequacy of irrigation water and rain.

THE Philippines may no longer attain its economic growth target of 7 percent to 8 percent this year after it posted a 6-percent gross domestic product (GDP) growth in the third quarter.

The local and foreign business community yesterday called on the government to put more focus on developing the lagging agriculture sector.

Weakness in the global economy hurt trade in the third quarter.

“As inclusive growth is needed, the agribusiness sector needs to be pushed”, Schumacher said.

The Philippine economy grew slightly slower-than-expected in the third quarter of 2015 but remains on track to be one of Asia’s fastest growing economies this year with domestic consumption and the country’s services sector staying strong.

Private consumption was a major growth driver.

“They will probably retain a neutral stance in the December meeting, but we might see a less hawkish rhetoric from the BSP from hereon until probably we see the fourth quarter (GDP) print”, said Emilio Neri, chief economist at the Bank of the Philippine Islands. “Improved purchasing power due to low inflation will also keep consumer demand vibrant in the succeeding months, and will further be ramped-up by holiday spending”, said Economic Planning Secretary Arsenio M. Balisacan.

The public sector performance improved in the third quarter, as the government’s final consumption expenditure increased to 17.4% from 3.9%.

Budget Secretary Florencio Abad meanwhile said last quarter’s GDP growth “provides a strong foundation for higher quality growth” in the years ahead.

Balisacan said the government would also keep the 7 percent to 8 percent full-year target for 2016.

For the first 9 months of the year, the average government final consumption expenditure reached 7.2%, a leap from last year’s contraction of 0.2%.

The National Food Authority, the state agency overseeing imports, has yet to approve any additional rice purchase on top of the 500,000 tons that the Philippines has already bought from Vietnam and Thailand for shipment in the first quarter, Mr. Balisacan said.

“On the back of sluggish global growth, economic policies should continue to encourage investments that cater to domestic demand”.

Officials said risks to the growth outlook include El Niño’s effect on agriculture and potential political uncertainty as President Aquino’s six-year term draws to a close.