Philippines Q3 GDP Growth Strongest in A Year
The Philippines economy grew an annual 6.9 percent in the September quarter of 2017, following an upwardly revised 6.7 percent expansion in the previous quarter and above market consensus of a 6.5 percent growth. It was the strongest growth since the third quarter 2016, as government spending rose at a faster pace while private consumption, investment and exports increased further.
11/16/2017 4:50:08 AM
In the three months to September, government expenditure rose 8.3 percent, faster than a 7.1 percent growth in the June quarter, as the government embarked on a large infrastructure construction program. Household consumption expanded 4.5 percent year-on-year, compared to a 5.9 percent increase in the second quarter.
Gross domestic capital formation increased by 6.6 percent, slowing from a 8.5 percent growth in the previous quarter and marking the second straight quarter single digit growth after eight straight quarters of double-digit gains. Investment in intellectual property products grew by 29.2 percent, followed by durable equipment (8.9 percent); breeding stocks & orchard development (3.5 percent), and construction (2.8 percent).
Exports increased by 17.2 percent, following a 20.4 percent rise in the second quarter. Sales of goods rose 17.4 percent (from 23.5 percent in the second quarter) and those of services went up 16 percent (from 11 percent). Imports rose by 13.9 percent, following a 18.7 percent rise in the preceding quarter.
On the production side, the services sector advanced 7.1 percent, compared to a 6.3 percent growth in the three months to June. Growth in the sector was supported by public administration & defense, compulsory social security (8.2 percent); real estate (7.7 percent); trade and repair of motor vehicles, motorcycles, personal and household goods (6.8 percent); other services (7.7 percent); transport, storage & communication (3.9 percent), and financial intermediation (8.6 percent). The industry sector expanded 7.5 percent, following a 7.4 percent growth in the preceding quarter. Mining & quarrying went up by 4.6 percent, following a 12.5 percent rise in the June quarter. Manufacturing grew (9.4 percent), followed by construction (3.8 percent), and electricity, gas and water supply (3.3 percent). Agriculture, hunting, forestry and fishing rose 2.5 percent following a 6.3 percent expansion in the previous period.
The world bank in April pegged its economic growth outlook for the Philippines this year at 6.9 percent, then downgraded it to 6.8 percent last July, the same pace as in 2016, and well inside the Philippines government 6.5 - 7.5 percent target. Over the next 6 years, the government is targeting GDP growth within a 7 percent to 8 percent range annually.
On a quarter-on-quarter seasonally adjusted basis, the GDP advanced 1.3 percent, compared to an upwardly revised 2 percent growth in the June quarter and below market consensus of 1.6 percent.