MANILA — The Department of Finance (DOF) is projecting “at least 6.5 percent” growth for the Philippine economy in the third quarter this year, higher than the upwardly revised 6.2 percent in the previous quarter.
In a report to Finance Secretary Carlos Dominguez III, Finance Undersecretary and DOF economist Gil Beltran said the third quarter output is expected “to be higher than the first half revised growth of 6.4 percent.
Beltran attributed his forecast to the 30 percent increase of government spending and the 8.8 percent real growth in manufacturing production.
“We also expect growth to be investment-led due to the 47 percent rise in NG capital outlays,” he added, but did not provide additional figures.
The government has been increasing its expenditures, particularly on infrastructure in line with its “Build, Build, Build” program, and on social programs.
The Philippine Statistics Authority (PSA) is scheduled to report on the domestic economy’s performance for the third quarter of the year on Thursday, November 8.
From January to March this year, the economy churned in a 6.6 percent output, as measured by gross domestic product (GDP).
On Wednesday, the PSA revised the six percent GDP growth in the second quarter to 6.2 percent, which brought the first half expansion to 6.4 percent.
Economists are positive on the sustained rise of the domestic economy given the robust growth of investment.
Economic managers have cut the GDP target for this year to between 6.5-6.9 percent from the original seven percent to eight percent given the impact of mostly external factors.
They, however, remain optimistic for an above six percent output for the whole of 2018, noting that domestic fundamentals remain strong. (Joann Villanueva/PNA)
