MANILA: The Philippine economy saw a significant improvement in the third quarter due to a resurgence in government spending, according to the nation’s economic planning secretary. Gross domestic product (GDP) increased by 5.9 percent compared to the same period last year, far surpassing the 4.7 percent forecast in a Reuters poll. This was aided by a 6.7 percent rise in government spending, which reversed the 0.7 percent dip from the previous quarter.
“We hope to maintain this momentum for the remainder of the year and the years to come,” said Economic Planning Secretary Arsenio Balisacan during a media briefing. The third-quarter growth rate has brought the January to September period’s total to 5.5 percent, which is still below the government’s 6-7 percent goal for 2023. Despite this, Balisacan believes the target is “still doable” and “within reach”.
Quarter-on-quarter growth was 3.3 percent, exceeding the 2 percent prediction of economists and the 0.9 percent contraction of the preceding quarter. Inflation, however, has been a challenge, as it has slowed household consumption to 5 percent in the July to September period from 5.5 percent in the second quarter.
“We emphasize that non-monetary measures to protect the purchasing power of Filipinos remain crucial as we address the issue of high inflation,” Balisacan said. Annual inflation saw a slight decrease in October to 4.9 percent from 6.1 percent the previous month, but the central bank is still prepared to take policy action if needed.