Philippine Economy Expands at a Slower Rate in Q3

Philippines' GDP advanced 7.0 percent in the third quarter of 2013 from 7.6 percent in the previous three-month period and 7.3 percent a year earlier. It is the slowest growth rate in the last five quarters, as a rebound in the external sector was not enough to offset a slowdown in government spending.
National Statistical Coordination Board | Joana Taborda | 11/28/2013 11:40:30 AM
On the expenditure side, while household consumption grew at a faster pace in the third quarter (6.2 percent yoy from 5.1 percent in the previous three-month period), government expenditure slowed sharply to 4.6 percent yoy (from 18 percent in the previous quarter).

The external sector surged, with both exports and imports recovering from last quarter’s contraction (up by 10.6 percent yoy and 14.6 percent yoy, respectively).

Investment decelerated for the second straight quarter (15.6 yoy percent from 18 percent in the second quarter), due to lower investment in construction fixed capital. 

On the production side, growth was driven by the services sector with the robust performance of real estate, renting and business activities, trade and financial intermediation. The industrial sector slowed to 8.3 percent over a year earlier from 10.2 percent in the second quarter, as mining shrank for the third quarter in a row and construction eased to 4.7 percent. Manufacturing expanded 9.7 percent, lower than 10.3 percent in the previous quarter.  

On a seasonally adjusted basis, the GDP growth slowed to 1.1 percent, the lowest rate in two years. 

Philippine Economy Expands at a Slower Rate in Q3