The Philippine’s Q3 GDP grew 6.2% year-on-year, remaining one of the fastest growing economies in Asia.
The growth was fueled by stronger government spending, slower inflation and an increase in agricultural output.
However, the growth momentum might be hard to sustain as uncertainties such as the US-China trade tension remains.
The country’s growth target for the year is 6-7%, which needs a 6.7% growth in Q4 to meet the lower end of it, said Economic Planning Secretary Ernesto Pernia.
The country’s GDP expanded 5.5% in Q2 and 4% in Q1.
However, slowing inflation should help give the domestic demand a boost because it allows the central bank to reverse some of the tightening done last year, Pernia added.
Highlights
Exports shrank for the first time in six months in September because of a drop in demand from some top trading partners.
Imports fell for a sixth month in a row in September.
Expenditures were up 39% in September year-on-year from last year.
However, spending in the nine months ended September fell 2.1% short of the government’s program.
Benchmark rates cut thrice this year already
The country’s central bank already cut its benchmark interest rate three times this year by a total of 75 basis points to 4.0% while reducingthe reserve requirement ratio (RRR) by 400 basis points to 14%.
There will be no further monetary policy and RRR cuts for the year, according to Central bank Governor Benjamin Diokno quoted as saying media reports.
The central bank will have policy meetings on Nov 14 and Dec 12 before the year ends.
