BSP Governor Benjamin Diokno (file photo)
MANILA – The government’s 4 percent to 5 percent growth assumption for this year may likely be surpassed following the higher-than-expected domestic output in the third quarter of the year, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said.
In a Viber message to journalists on Tuesday, Diokno said the 7.1-percent growth, as measured by gross domestic product (GDP), in the third quarter of the year is higher than the central bank’s forecast, among others.
“This stronger than expected growth —vs BSP’s forecast of 6.2 percent, for example— increases the likelihood that the revised growth projection of 4 to 5 percent in 2021 would be exceeded,” he said.
Citing data released by the Philippine Statistics Authority (PSA), Diokno said “growth was broad based, except agriculture which contracted largely due to severe weather disturbances.”
PSA reported that agriculture, forestry, and fishing contracted by -1.7 percent from July to September this year, but the industry sector jumped by 7.9 percent and the services by 8.2 percent.
The construction sector expanded by 16.8 percent followed by the wholesale and retail trade, repair of motor vehicle and motorcycles, 6.4 percent; and manufacturing, 6.3 percent.
Gross capital formation rose by 22 percent, government spending expanded by 13.6 percent, and household spending increased by 7.1 percent.
Imports posted higher expansion at 13.2 percent compared to the 9-percent jump in exports.
However, Diokno said this “should be seen in a positive light as a leading indicator of more robust economic activity in the near term.”
“The Bangko Sentral ng Pilipinas will continue to be patient with its accommodative monetary policy stance to support the economy’s full recovery,” he added.
Last year, the central bank’s policy-making Monetary Board (MB) slashed the BSP’s key rates by a total of 200 basis points to help buoy the domestic economy during the pandemic.
Diokno vowed to keep this accommodative stance after noting that domestic growth remains fragile. (PNA)
