Philippines: Economic growth accelerates despite global headwinds
November 28, 2012
In the third quarter, GDP expanded 7.1% over the same period last year. The reading came in above both the 6.0% increase observed in the second quarter (previously reported: +5.9% year-on-year) and market expectations of a 5.4% expansion. In fact, the reading represented the fastest pace of economic expansion observed in two years. The acceleration in economic growth mainly reflected faster growth in both consumer and government spending. Private consumption accelerated from a 5.9% increase in the second quarter to a 6.2% rise in the third, while government consumption rose a hefty 12.0% (Q2: +6.8% yoy). Meanwhile, fixed investment expanded 8.7% in the third quarter (Q2: +11.8% yoy). Exports of goods and services slowed from an 8.3% increase in the second quarter to a 6.9% expansion in the third. Simultaneously, imports grew 8.3% (Q2: +10.3% yoy). As a result, the external sector's net contribution to overall economic growth improved from minus 1.2 percentage points in the second quarter to minus 0.8 percentage points in the third.