ECONOMIC GROWTH. The Philippines is expected to hit the economic growth target of 6 percent to 7 percent this year. The economy surged 6.2 percent in the third quarter of 2019, bringing the year-to-date economic growth to 5.8 percent. (PNA file photo)
MANILA — Socioeconomic Planning Secretary Ernesto Pernia sees the Philippines still hitting the economic growth target of 6 percent to 7 percent this year on the back of government spending, after expanding to one of the fastest rates in Asia in the third quarter.
The government reported on Thursday that the country’s gross domestic product (GDP) rose by 6.2 percent in July to September period following two-quarters of deceleration, bringing the year-to-date economic growth to 5.8 percent.
In a press briefing, Pernia said the Philippines likely ranked second behind Vietnam’s 7.3 percent but higher than China’s 6.0 percent. India’s expected third-quarter growth was below 6 percent, while Indonesia at 5 percent.
He said the economy will have to expand by at least 6.7 percent in the last quarter to meet the low-end of the full-year target.
“(This is) a challenge that we are confidently taking on,” he added. “Very achievable, we have seen the economy surging and the momentum will continue. Surging for another 5 percentage points should be easy.”
Philippine Statistics Authority (PSA) Undersecretary Dennis Mapa said a 6.7-percent growth is “still doable” based on historical data.
Pernia, also Director-General of the National Economic and Development Authority (NEDA), attributed the third-quarter economic performance to stronger growth in public spending.
He particularly cited projects of the Department of Public Works and Highways (DPWH) and Department of Transportation (DOTr), as well as communication projects.
“The big spender really is DPWH and they have a plan to catch up on spending and it seemed to have worked as they planned mid-year,” he added. “Government is committed to speeding up the implementation of its programs and projects that were affected by the budget impasse and the election ban earlier this year.”
The NEDA chief said on Wednesday the Investment Coordination Committee-Cabinet level and the Committee on Infrastructure approved the updated list of infrastructure flagship projects of the Duterte administration, and are subject to further refinements.
“We deem that these projects are more feasible, responsive to medium and long-term demands and challenges towards uplifting the quality of life of the Filipino people, especially those being left behind,” he said.
In the remaining months of the year, Pernia also expects the benign inflation outlook and more upbeat consumer confidence to stimulate private consumption, especially with the holiday season has begun.
“As we welcome the easing of inflation, we continuously monitor prevailing prices to ensure that they are reflective of the current market situation. Ample supply of basic commodities should also be ensured to further boost domestic consumption,” he said.
The country’s inflation rate eased at more than a three-year low in October at 0.8 percent mainly due to lower prices of food, including rice.
Among the major economic sectors, the PSA reported that services posted the fastest growth with 6.9 percent in the third quarter.
Industry followed which grew by 5.6 percent, while agriculture, hunting, forestry, and fishing rose by 3.1 percent.
Services contributed 4.1 percent to the overall economic growth during the period, followed by services at 1.9 percent, and agriculture at 0.2 percent.
The economy grew to a six-quarter high from July to September this year after accelerating to 6.8 percent in the first quarter of 2018. It expanded by 5.5 percent in the second quarter of 2019. (PNA)
