The Philippine Statistics Authority (PSA) on Tuesday revised to 6 percent the country’s third-quarter gross domestic product (GDP) growth from the preliminary estimate of 5.9 percent.
This brought the economic growth in the first three quarters to 5.6 percent, lower than 7.7 percent registered in the same period in 2022 and the government’s target of between 6 percent and 7 percent.
The PSA said the major contributors to the upward revision were manufacturing, from 1.7 percent to 1.8 percent and financial and insurance activities, from 9.5 percent to 9.6 percent.
The accommodation and food service activities, which grew 21 percent from 20 percent, also contributed to the revised economic growth.
The growth rate of the gross national income (GNI) in the third quarter was maintained at 12.1 percent. The annual growth of the net primary income (NPI) from the rest of the world, however, was revised downward from 112.5 percent to 111.6 percent.
Meanwhile, a market report from the University of Asia and the Pacific (UA&P) showed that the economy is expected to grow by 6 percent this year from 5.5 percent in 2023.
UA&P said the 2024 growth was driven by strong employment, softer inflation and robust infrastructure spending.
The government targets a growth rate of between 6.5 percent and 7.5 percent in 2024.
The report added that the national government capital outlays should reach at least 5 percent of gross domestic product in 2024, and the large public private partnership infrastructure projects are likely to accelerate this year.
“These, together with an inflation average of 3.8 percent full year [from 6 percent in 2023], should bolster consumer spending,” UA&P said.
“The peso, however, will remain in depreciation mode due to large trade deficits and US Fed inaction on policy rate cuts until mid-year,” it said.