Philippines: Philippine economy gains steam in Q3 on buoyant public spending
November 26, 2015
In the third quarter, GDP expanded 6.0% over the same period of last year The reading came in above the 5.8% rise recorded in Q2, but fell slightly short of the 6.3% expansion the markets had expected.
Q3’s acceleration was mainly driven by buoyant public spending, solid private consumption and rising fixed investment. Total consumption picked up, with public spending skyrocketing from Q2’s 3.9% increase to a notable 17.4% expansion, which represented the largest gain since Q1 2012. Private consumption accelerated only slightly, from Q2’s 6.2% to 6.3% in Q3, yet it reached the fastest expansion since Q3 2012. Fixed investment growth also accelerated, rising from an 8.9% expansion in Q2 to 9.3% in Q3.
In the external sector, exports of goods and services expanded 6.4% over the previous year in Q3, which was up from the feeble 2.1% increase observed in Q2. Imports accelerated markedly to a 13.5% increase (Q2: +10.4% year-on-year). As a result, the external sector’s net contribution to overall economic growth improved slightly, advancing from minus 4.1 percentage points in Q2 to minus 3.9 percentage points in Q3.