Philippine growth slows to 2.1 per cent as farming and investment weaken
The Philippine economy grew 2.1 per cent year on year in the third quarter, slowing from a revised 2.4 per cent in the previous quarter. Agriculture contracted and industry stalled, while household consumption growth eased. Stronger exports offered some support as officials pointed to high food and energy prices, adverse weather and delays affecting infrastructure delivery.
Economics & Markets··Evening
Third-quarter growth slows further
The Philippine economy expanded 2.1 per cent in the third quarter compared with the same period a year earlier. That was below the revised second-quarter rate of 2.4 per cent and the 4.0 per cent expansion recorded in the previous year’s third quarter. The latest release therefore shows a slowdown against both recent quarterly growth and the year-earlier pace.[1], [2]
Statistics authority chief Claire Dennis Mapa presented the figures. Second-quarter growth was revised upward from 2.3 per cent to 2.4 per cent. Across the first nine months, the economy grew 2.5 per cent. These figures compare the relevant periods with a year earlier, rather than measuring the change from one quarter to the next.[1]
Households and farms face pressure
Annual household consumption growth eased from 2.9 per cent in the second quarter to 2.4 per cent in the third. Economy, Planning and Development Secretary Arsenio Balisacan said high food and energy prices had reduced households’ purchasing power. Inflation reached 7.8 per cent in October, providing the price backdrop to his assessment of spending.[1]
Agriculture contracted 4.8 per cent during the quarter. Declines in palay and corn production exceeded 17 per cent, with Balisacan pointing to adverse weather affecting farm output. Industry recorded no growth. Services, by contrast, expanded 3.7 per cent, leaving the sector as a source of growth while farming output fell and industrial activity stalled.[1]
Exports offset part of the investment weakness
Public construction contracted for a sixth consecutive quarter, falling 15.1 per cent year on year after a 33.4 per cent drop in the previous quarter. Private construction barely grew, while investment in durable equipment declined 7.8 per cent. Balisacan said weather disruptions and delays in project validation and payments had hampered infrastructure delivery.[1]
Exports rose 8.6 per cent, with electronic product exports increasing 19.4 per cent. Government consumption and exports of business services also provided support. Those contributions partly offset weaker domestic activity, although the aggregate growth rate still slowed as investment, household spending and agricultural production lost momentum.[1]
