Philippine economy said to have expanded by 5.5% in 3rd quarter

THE PHILIPPINE economy is estimated to have expanded by 5.5 percent in the third quarter due to greater government spending, rise in household consumption, and increase in invest- ments to the services sector, according to Moody’s Analytics.

In a report released yesterday, Moody’s Analytics said that the domestic economy’s strong performance enabled the country to endure the financial problems now upsetting the rest of the world.

“Despite a weak global environment, the Philippine economy likely grew by 5.5 percent year-on-year in the third quarter. Foreign investment and government spending are offsetting weakness in foreign demand,” wrote economist Katrina Ell of Moody’s Analytics.

Given the 5.5-percent estimated growth for the third quarter, the Philippines could end 2012 with a 5.9 percent rise in GDP (gross domestic product).

In the first semester, growth averaged at 6.1 percent.

The government’s full-year growth target has been set between 5 and 6 percent.

But Moody’s latest growth estimate marks a slowdown from the actual figures of the previous quarters—6.3 percent for the first, and 5.9 percent for the second.

“The often volatile agriculture sector took a hit in the third quarter as bad weather caused significant damage to crops,” Ell said.

Still, she added, bad weather and sluggish export performance were not sufficient to cause a substantial slowdown, due to growth in remittances that fuel household consumption.