Q3 GDP growth revised upward to 7%

MANILA, Philippines — Philippine economic growth in the third quarter of 2017 was revised upwards from 6.9 percent to seven percent, the Philippine Statistics Authority (PSA) said.

Contributing to the upward revision were gains in manufacturing, trade and repair of motor vehicles, motorcycles, personal and household goods, and mining and quarrying.

PSA said it revised the GDP estimates based on an approved revision policy consistent with international standard practices on national accounts revisions.

Growth in the third quarter of the year was attributed to sustained growth in exports and higher public spending.

On the demand side, public consumption was up 8.3 percent in the third quarter from 7.1 percent in the second quarter and 3.1 percent in the third quarter of 2016 on account of the pay increase of civilian government employees and allowances of military and uniformed government personnel as well as increased hiring in the Department of Education. 

Household consumption, on the other hand, slowed down to 4.5 percent in the third quarter from 5.9 percent in the second quarter and 7.2 percent in the third quarter of 2016. This was attributed to  rising prices of fuel, electricity and food. Private consumption, however, was expected to have picked up in the last quarter of 2017.

On the supply side, the services sector grew faster at 7.1 percent in the third quarter from 6.3 percent in the second quarter and 6.8 percent in the third quarter of 2016. The industry sector grew steady at 7.5 percent in the third quarter from 7.4 percent in the second quarter and 8.8 percent in the third quarter of 2016.

Agricultural production slowed down to 2.5 percent because of the crop damage caused by weather disturbances. The damage caused by typhoons Paolo and Ramil might further slow down agriculture and fisheries production in the next quarter.

The sector, however, remained within the positive growth territory, registering a 2.20 percent growth in the fourth quarter as announced by PSA yesterday.

The fourth quarter growth figures would be announced on January 23.