The main driver of the economy in the third quarter was service industries, which expanded 7.3 percent.
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Imports in September grew 6.7 percent to $6.17 billion, bringing the total imports in the nine months to September to $49.92 billion, up 2.3 percent from a year earlier.
The GDP growth for the third quarter will be announced Thursday, November 26, led by PSA and the National Economic and Development Authority. Raw materials and intermediate goods also increased 20.1 percent in September 2015 to reach $2.7 billion compared to $2.2 billion recorded in the same month previous year.
“This growth trajectory we are seeing will likely to continue in the fourth quarter as we expect domestic demand to still pick up during the holiday season”. But reform is a game that has no end.
“If you look at the composition of the growth in imports, we have faster increases in capital and intermediate goods-these are good things for production”.
The slowdown comes after years of sustained growth in the Philippines, formerly known as the “Sick Man” of Asia because of its poor economic performance.
“The modest growth of the agriculture sector, on the other hand, shows the impact of El Niño, as yields and harvests for palay [rice] and sugarcane were most affected due to inadequacy of irrigation water and rain”.
Growth in the industry sector slowed down to 5.4 percent from 7.8 percent past year.
Both public and private sector investments remained strong, as capital formation rose 8.9 percent, from the 0.2-percent contraction in the same period past year.
Officials said risks to the growth outlook include El Nino’s effect on agriculture and potential political uncertainty as President Benigno Aquino III’s six year term draws to a close.
Balisacan said a 6.9-percent growth in the fourth quarter was “achievable”.
The Philippine economy grew 6% in the third quarter, but it was not enough to satisfy investors.
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Import bills for consumer goods also grew by 10.1 percent to United States dollars 876.8 million in September this year from USD 796.4 million in September 2014, mainly on higher purchases of durable goods particularly of passenger cars and motorized cycle. “So far, the forecast indicates slight focus on our domestic constraints, infrastructure and recovery in construction and small-and-medium enterprises development”, Balisacan said.
