Philippine economy grows 6.9 per cent in last quarter

By on November 16, 2017


President Rodrigo Roa Duterte, in his speech during the closing ceremony of the 31st Association of Southeast Asian Nations (ASEAN) Summit and Related Summits at the Philippine International Convention Center on November 14, 2017, expresses the country's continuing commitment to building a strong and resilient ASEAN Community. KING RODRIGUEZ/PRESIDENTIAL PHOTO
President Rodrigo Roa Duterte, in his speech during the closing ceremony of the 31st Association of Southeast Asian Nations (ASEAN) Summit and Related Summits at the Philippine International Convention Center on November 14, 2017, expresses the country’s continuing commitment to building a strong and resilient ASEAN Community. KING RODRIGUEZ/PRESIDENTIAL PHOTO

MANILA, Philippines— The Philippine economy grew at a faster than expected 6.9 per cent annual pace in the July-September quarter, helped by increased public spending on pay hikes for government personnel, officials said Thursday.

Economic Planning Secretary Ernesto Pernia described the growth reported as a “spectacular growth rate after an election year.” It surpassed a market consensus forecast of 6.6 per cent and was an improvement on 6.7 per cent growth in April-June.

President Rodrigo Duterte inherited a booming economy when he took office in May 2016. So far growth has remained on track, despite the country’s massive poverty, inequality and insurgencies.

Growth in July-September last year was 7.1 per cent.

Manufacturing output expanded 7.5 per cent from a year earlier, while public consumption rose 8.3 per cent thanks to increased pay and allowances for public employees, including the military, Pernia said.

“We are now seeing a sustained improvement in government spending in a run-up to our massive infrastructure program the Build, Build, Build which will continually unfold in the months ahead,” Pernia said. “This is expected to ratchet up public spending even further.”

Household consumption is also seen picking up in the last quarter due to the Christmas season, he added.

Pernia said the economy is on track to meet the government’s full-year growth target range of 6.5-7.5 per cent.

The Philippines has posted more than 6 per cent growth for nine consecutive quarters, making it among the fastest growing economies in the region.

Still, civil strife in the southern third of the country has taken a toll as seen in the dismal performance of the Philippine peso this year. Any delays in the government’s ambitious infrastructure program also could pose risks.