Q4 GDP could grow by 6.9% — Budget chief

THE ECONOMY could muster close to 6.9% growth this quarter as public spending remains robust, the country’s Budget chief said, which if realized could bring the full-year average closer to the high end of the government’s target.

Budget Secretary Benjamin E. Diokno said sustained strength in government spending could help spur economic expansion to 6.9% between October and December, although slower than the 7.1% clocked last quarter.

“People are predicting something like 6.9% for the whole year. That means around 6.9% or 7% for the fourth quarter,” Mr. Diokno said in a recent interview when asked about his forecast for the fourth quarter.

“People are expecting a slowdown [in spending] due to the change in administrations, but obviously that didn’t happen so we are on track and we are positive that the budget can be implemented by Jan. 1.”

The Asian Development Bank (ADB) is poised this month to formally revise upward its growth estimate for the Philippines to 6.8% this year, coming from its September forecast at 6.4% to take into account the surprise growth pace seen last quarter.

Shanaka Jayanath Peiris, country representative of the International Monetary Fund, has also said that the multilateral lender is poised to revise upward its growth forecast for the Philippines given the previous quarter’s outturn.

The country’s gross domestic product (GDP) grew by an average of 7% in the nine months to September, already matching the top rung of the government’s 6-7% forecast pace for the entire 2016.