Dominguez confident to hit economic growth target

Finance Secretary Carlos G. Dominguez III is optimistic that full-year economic expansion this year could hit the lower band of the growth target amid government’s catch-up spending plan and stronger domestic consumption.

Dominguez said the country’s economy, as measured by its gross domestic product (GDP), may still grow at least six-percent this year, or within the Duterte administration’s downward revised target of 6.0 percent to 7.0 percent.

The local economy needs to expand not lower than 6.7 percent in October to December to hit the low-end of the full-year, which Socioeconomic Planning Secretary Ernesto M. Pernia said “a challenge that we are confidently taking on.”

“Further acceleration of state spending on infrastructure and human capital development served as a fiscal stimulus to the economy," Dominguez said, noting they attained their expenditure target in the latter part of the July to September period despite budget delay.

Dominguez further said the decelerating headline inflation now at 0.8 percent in September would also fuel consumer spending, which will help sustain the growth momentum in the third-quarter until the final three-months of 2019.

On Thursday, the Philippine Statistics Authority (PSA) reported a GDP growth of 6.2 percent in the third-quarter from 5.5 percent in April to June.

The PSA said the biggest contributors to the third quarter growth was the Services sector with 4.1 percentage points, followed by Industry with 1.9 percentage points and Agriculture with 0.2 percentage point.

Services recorded the fastest expansion at 6.9 percent in the third quarter, while Industry grew by 5.6 percent, and Agriculture by 3.1 percent, the PSA said. (Chino S. Leyco)