DepDev turns less optimistic on Q3 growth

MANILA, Philippines — The Department of Economy, Planning and Development (DEPDev) has become less optimistic about the country’s third quarter economic performance, citing challenges such as the flood control controversy and global uncertainties.

“I think that the (third quarter) growth may not be as rosy as we expect or we had expected,” DEPDev Secretary Arenio Balisacan told reporters on the sidelines of the Presidential Filipinnovation Awards National Competition yesterday.

He said the third quarter was a challenging period, citing domestic and external factors that may have affected the country’s growth performance.

Asked about factors that may have weighed on growth, he said the flood control controversy is expected to affect government spending, construction and fixed capital formation.

He said a slowdown is also expected in the industry and services sectors, given the series of typhoons that hit the country.

“Industry is probably at its lowest point in recent years,” he said, noting that the typhoons have led to work and class suspensions.

External risks, including those stemming from tariffs imposed by the United States, are also expected to impact the growth performance.

Balisacan, however, said that these setbacks are expected to be temporary.

“The potential remains strong. Our GDP (gross domestic product) growth potential is quite high, six percent and above,” he said.

“But reaching those potentials is another matter,” he said, noting that this could be affected by instability and uncertainties.

Data on third quarter GDP growth will be released on Nov. 7.

A poll of six economists yielded a median forecast of 5.45 percent for third quarter economic growth, slightly lower than the 5.5 percent expansion posted in the second quarter.

Economists said unfavorable weather and corruption issues related to flood control may have tempered economic activity in the third quarter.

As of the first semester, the economy grew by 5.4 percent.

For 2025, the government expects growth to range between 5.5 percent and 6.5 percent.