Philippines GDP Growth Beats Expectations in Q3

The Philippines economy grew an annual 7.1 percent in the September quarter of 2016, following a 7.0 percent expansion in the second quarter and beating market consensus of a 6.7 percent growth. It was the strongest expansion since the June quarter 2013, mainly supported by strong private consumption while government spending, investment and exports eased.
PSA l Rida Husna | rida@tradingeconomics.com 11/17/2016 4:31:47 AM
In the three months to September, household consumption expanded 7.3 percent year-on-year, compared to a 7.4 percent increase in the second quarter. Government expenditure advanced 3.1 percent, easing  significantly from a 13.5 percent growth in the previous three months, as programs and projects were evaluated relative to the plans and policies of the new administration of President Rodrigo Duterte, who began a six-year term at the end of June. Gross domestic capital formation increased by 20.0 percent, compared to a 25.0 percent growth in the previous quarter, supported by construction: +16.8 percent, durable equipment: +29.6 percent, breeding stocks & orchard development:+3.4 percent and intellectual property products:+29.2 percent.

Exports grew by 8.8 percent, slower than a 10.0 percent rise in the June quarter. While sales of goods rose 7.8 percent (from +7.2 percent in the second quarter), those of  services went up 14.2 percent (from +19.5 percent). Imports increased by 14.2 percent, following a 23.3 percent in the preceding quarter.

On the production side, the services sector advanced by 6.9 percent, compared to a 8.3 percent growth in the second quarter and accounted for a 49.1 percent of the total economy. Growth in the sector was supported by real estate (+8.8 percent), financial intermediation (+8.1 percent), other services (+7.0 percent), trade and repair of motor vehicles, motorcycles, personal and household goods (+6.5 percent), transport, storage & communication (+4.9 percent) and public administration & defense; compulsory social security (+3.7 percent). The industry sector expanded 8.6 percent, following a 7.1 percent growth in the preceding quarter. Construction recorded the highest increase (+15.5 percent), followed by electricity, gas and water supply (+9.5 percent) and manufacturing (+6.9 percent). In contrast, mining & quarrying shrank by 0.4 percent, following a 7.1 percent rise in the June quarter. Agriculture, hunting, forestry and fishing grew by 2.9 percent, rebounding from a 2.0 percent contraction in the previous period. 

For the first nine months of 2016, the economy expanded 7.0 percent, faster than a 5.7 percent growth in the same period a year earlier.

For 2016, the economy is expected to grow between 6.0 to 7.0 percent.

On a quarter-on-quarter seasonally adjusted basis, the GDP advanced 1.2 percent, slowing from an upwardly revised 2.1 percent expansion in the three months to June but slightly higher than estimates of a 1.1 percent growth. 

Philippines GDP Growth Beats Expectations in Q3