NEDA sees 6.5% to 7% growth in Q4

MANILA, Philippines — The National Economic and Development Authority (NEDA) sees economic growth in the fourth quarter accelerating to a range of 6.5 percent to seven percent. 

Socioeconomic Planning Secretary Ernesto Pernia said this would be supported by increased government spending, as well as benign inflation that will boost purchasing power. 

National Statistician Dennis Mapa said the consumption during the holiday season would give household consumption a boost. 

“Consumption normally increases during the fourth quarter because of the holidays,” he said. 

Economic growth accelerated to 6.2 percent in the third quarter of 2019 – in line with market expectations – supported by stronger government spending and household consumption, recovery in the agriculture sector and steady growth in services. 

This was faster compared with the 5.5 percent gross domestic product (GDP) growth in the second quarter of the year and six percent in the third quarter of 2018. 

This brings the year-to-date average to 5.8 percent which is slightly below the lower end of the government’s full-year growth target of six percent up to seven percent. 

This means the Philippine economy will have to expand by at least 6.7 percent in the last quarter of the year to meet the lower end of the growth target. 

Compared with regional economies that have already released their GDP figures, the Philippines ranks behind Vietnam’s growth of 7.3 percent and ahead of China’s six percent, India’s expected third quarter growth of six percent, and Indonesia’s five percent. 

Alongside the slowdown in the growth of consumer prices, household consumption also rose by 5.9 percent in the third, quarter, faster than 5.6 percent in the second quarter and 5.3 percent in the third quarter of 2018.