Economists from the First Metro Investment Corp. and University of Asia and the Pacific said the economy likely grew 6 percent in the third quarter, faster than 5.5 percent a quarter ago, boosted by the government’s higher fiscal spending and aided by the easing inflation rate.
In their joint Market Call report for the month of October, the economists expected GDP growth to accelerate to 6 percent in the third quarter and even faster in the last quarter, as domestic demand revved up further.
“With inflation going much below Bangko Sentral ng Pilipinas’s target range [of 2 to 4 percent] and national government spending on the upswing, we remain more optimistic on the growth prospects for the second half,” they said.
“With inflation holding below the 2 percent BSP floor in the second half, and huge employment gains [supported by second lowest self-rated poverty rate of 42 percent in the third quarter as estimated by SWS], consumer spending shall show even more robust growth,” they said.