Philippines’ robust Q3 growth beats views
manila — The Philippine economy grew at its fastest pace in more than three years in July-September, most of President Rodrigo Duterte’s first 100 days in office, setting him up to meet the ambitious target he set for the year.
Duterte’s government was quick to take advantage of the favourable figures, saying they showed that the president “offers more than ‘war on drugs’.”
Duterte, a former prosecutor who was elected in May on promises of a fierce campaign against crime and illicit drugs, said in a speech on Thursday that addressing corruption and criminality were the “building blocks of a strong and resilient economy.”
But the president’s controversial comments, plus the uncertainty surrounding US labour and trade policies after the election of Donald Trump, have left the Philippines’ economic outlook “much less certain,” said Gareth Leather, senior Asia economist at Capital Economics in London. “With Duterte in charge it is hard to rule out a sudden shift in economic policy or a disruption of the political stability that has characterised the last six years,” Leather said in research note.
Duterte inherited an economy that has enjoyed 70 quarters of uninterrupted growth, buoyed mainly by domestic demand fuelled by remittances from migrant workers.
That momentum, further boosted by election campaign spending in the first two quarters of the year, resulted in the third quarter’s forecast-topping 7.1 per cent growth.
Such rapid expansion made the Philippines the fastest-growing economy in Asia by far, outpacing even China.
On a quarter-on-quarter basis, gross domestic product expanded 1.2 per cent, the national statistics agency said, slightly above the 1.1 per cent growth projected in a Reuters poll, but slower than the previous quarter’s 2.1 per cent.
“We are confident that we will grow within the six to seven per cent growth target,” socio-economic planning director Reynaldo Cancio told a briefing.
Growth in the third quarter was supported by household consumption, which sustained its seven per cent-plus annual rate pace.
Fixed capital investment growth topped 20 per cent, with public construction continuing its doubledigit growth.
Private construction grew a sharp 16.2 per cent in the third quarter compared with eight per cent over April-June. Bangko Sentral ng Pilipinas Governor Amando Tetangco said on Thursday there was no need to adjust monetary policy at this time. —