Philippine Economy Growth

MANILA (Reuters) – The Philippine economy grew 5.2% in the third quarter from a year earlier, data showed on Thursday. This marks a slowdown from the previous quarter due to bad weather that delayed government spending and affected agricultural output.

Annual Growth

The annual growth rate for the July to September quarter was below the 5.7% forecast from a Reuters poll, making it the slowest growth since a 4.3% expansion in the second quarter of 2023.

Despite this slowdown, the government remains optimistic about achieving the full-year growth target of 6.0% to 7.0%. Economic Planning Secretary Arsenio Balisacan expressed this optimism during a news conference.

Improved Sentiment

Consumer and business sentiment have shown signs of improvement owing to easing inflation. Balisacan noted that the central bank’s monetary easing is expected to stimulate spending.

Quarterly Growth

On a quarter-on-quarter basis, GDP grew 1.7% in July-September, outpacing economists' expectations of a 1.5% rise and surpassing the previous quarter’s 0.5% increase.