“This growth trajectory is expected to continue in the fourth quarter”, said Economic Planning Secretary Arsenio Balisacan at a news conference on the performance of the economy during the third quarter.
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“Our recent experience on infrastructure spending has shown us that it is not enough to just increase the money resources for infrastructure, it also requires improving our bureaucratic systems so that there is ample absorptive capacity”, Balisacan said.
In a separate statement, Finance Secretary Cesar Purisima said the Q3 growth was “the third fastest among major Asian countries and the second fastest among th ASEAN-5”.
Meanwhile, with availability of more jobs, increasing employment and income, low inflation and inflow of overseas Filipino remittances, household consumption also grew 6.3 percent.
At the same time, the agriculture sector recovered in the third quarter.
For the overall gross domestic product figure for the July-September quarter, analysts and economists were expecting around 6.2% growth.
In the same quarter past year, GDP expanded at a slower pace of 5.5 percent.
Main growth drivers in the third quarter were services, which climbed an annual 7.3 per cent driven by transport, communication and real estate, and a 17.4 per cent jump in government spending in the period against a year-ago decline of 2.5 per cent.
The National Food Authority, the state agency overseeing imports, has yet to approve any additional rice purchase on top of the 500,000 tons that the Philippines has already bought from Vietnam and Thailand for shipment in the first quarter, Mr. Balisacan said.
“Moreover, the services sector will remain strong and investments are likely to go up due to the expected increase in disbursements”, he added.
Coloma said Aquino is firmly committed to achieve inclusive growth through continuing investments in public infrastructure and human capital development anchored upon good governance.
Credit Suisse analyst Michael Wan said the Philippines had fiscal and monetary policy space to respond to a potential regional growth slowdown given its lesser exposure to China compared to its neighbours.
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Sergio R. Ortiz-Luis Jr., president of the Philippine Exporters Confederation, remained bullish that the local economy would post a faster growth in the last three months, citing increased government spending, a more robust domestic consumption and election spending. He said risks include El Nino’s impact on agriculture and the impending change in leadership.
