By Leslie D. Venzon
MANILA, Nov. 27 (PNA) — The Philippine government is optimistic it will achieve at least 6-percent gross domestic product (GDP) growth this year after the country’s economy grew slower in the third quarter brought about by typhoon damage and falling public spending.
The GDP expanded by 5.3 percent in July to September, bringing first three quarters average at 5.8 percent, lower than the government’s 6.5 to 7.5 percent target for the year.
Despite this, the Philippines was one of Asia’s top performing economy during the period, following China, Vietnam and Malaysia.
“Admittedly, even hitting the low-end of the target growth rate for the year would pose a big challenge. We need to grow by at least 8.2 percent in the fourth quarter,” Socioeconomic Planning Secretary Arsenio Balisan told reporters.
Balisacan said that for the country to hit a 6-percent GDP for the full year, the economy needs to grow by 6.8 percent in the fourth quarter.
He considered a 6.8-percent growth “very doable” given the projected pickup in government spending, the positive businesses’ outlook on the economy and as the reconstruction assistance in the typhoon ‘Yolanda’-affected areas is already gaining traction.
Balisacan, also the Director-General of the National Economic and Development Authority (NEDA), said the private sector is also expected to maintain a robust performance in the fourth quarter.
“This agriculture decline will be reversed in the fourth quarter as indicated by the current supply,” he added.
The Philippine Statistics Authority (PSA) on Thursday reported that the entire agriculture sector mainly pulled down the GDP growth in the third quarter, decelerating by 2.7 percent, the lowest since fourth quarter of 2009.
The industry sector also slowed down to 7.6 percent, slightly lower than the previous year’s 7.7 percent.
The services sector decelerated to 5.4 percent but remained the main driver of GDP growth for the quarter.
”(In the fourth quarter,) construction will still be a big boost especially given the ‘Yolanda’ reconstruction. And services, of course the BPO (business process outsourcing), will still be robust. We are seeing a pickup actually in tourism as well,” said NEDA Asst. Director General Rosemarie Edillon. (PNA)