Q3 GDP likely at 6.6%

Moody’s Analytics said the Philippine economy likely grew 6.6 percent in the third quarter amid firm demand.

The research arm of Moody’s Corp. said in its latest Asia Pacific Economic Preview the gross domestic product expansion in the third quarter was faster than the 6.4 percent growth recorded in the second quarter of the year.

“Domestic demand likely remained firm as consumers benefited from steady inflows of overseas worker remittances and a healthy job market and investment stayed firm on the back of government-led infrastructure projects,” it said.

Moody’s Analytics said non-residential construction permits were up 16.8 percent in the first half after a 7.8 percent rise in the same period last year.

It pointed out the country’s export sector continued to recover and boost the economic expansion

“Exports also likely boosted GDP growth, as demand for semiconductors and electronics was firm during the quarter,” Moody’s Analytics said.

Socioeconomic Planning Secretary Ernesto Pernia earlier said the GDP growth in the third quarter could reach the midpoint of the 6.5 to 7.5 percent target for 2017.

“The forecast is going to be better than the second quarter. The outlook on the global economy has improved, so our exports are increasing and also government spending has been increasing double digits,” he earlier told reporters.

Latest data from the Philippine Statistics Authority showed exports climbed 4.3 percent to $5.59 billion in September from $5.36 billion in the same month last year.

Economic managers see the economy expanding between 6.5 and 7.5 percent from 6.9 percent last year.