THE Philippines’ gross domestic product (GDP) likely grew by 6.5 percent in the third quarter of 2018 on the back of increases in government spending and manufacturing, the Department of Finance (DoF) said on Wednesday.
Quoting a report by Finance Undersecretary Gil Beltran, Finance Secretary Carlos Dominguez 3rd told reporters that his department expected economic growth in July to September “to be higher than the first-half revised growth of 6.4 percent — at least 6.5 percent — due to the 30-percent growth in NG (national government) expenditures and the 8.8-percent real growth in manufacturing production.”
“We also expect growth to be investment-led, due to the 47-percent rise in NG capital outlays,” he added.
The forecast came after the Philippine Statistics Authority (PSA) raised its economic growth estimate for the second quarter to 6.2 percent from the earlier 6 percent.
“Major contributors to the upward revision were other services; real estate, renting and business activity; and mining and quarrying,” the state-run statistics agency said in a statement.
The new estimate was based on an approved revision policy that is consistent with international standard practices on national accounts revisions, it added.
“Net primary income from the rest of the world was revised down to 4.1 percent from 4.7 percent. Meanwhile, gross national income had an upward revision of 5.9 percent from 5.8 percent.”
The revisions were announced a day before the government is set to release its third-quarter GDP growth data.
Analysts polled by The Manila Times expect that growth to match the revised April-to-June expansion, but remained slower than a year ago.
Estimates for July-to-September GDP ranged from 5.9 percent to 6.7 percent with a 6.2 percent average, lower than the revised 7-percent expansion in the same period last year and matching the revised figure in April to June.