Philippine economy beats expectations, growing 7.6 percent in Q3 | Business and Economy


Official says Southeast Asian economic system on monitor to satisfy authorities’s development goal for 2022.

The Philippine economic system grew at a faster-than-expected clip within the third quarter, however the authorities stated the restoration isn’t with out dangers given rising rates of interest and hovering inflation that would crimp client spending.

Underpinned by pent-up home demand, the economic system expanded 7.6 p.c within the third quarter from a 12 months earlier, official information confirmed on Thursday.

The economic system would possible develop above the federal government’s 6.5-7.5 p.c development goal for 2022, financial planning secretary Arsenio Balisacan advised a media briefing.

On a quarterly foundation, gross home product (GDP) rose 2.9 p.c versus a 0.1 p.c contraction in April-June and an anticipated 1 p.c rise, the info confirmed.

“Whereas these developments are exceptional, I wish to underscore that our nation nonetheless faces a substantial burden within the type of excessive inflation,” Balisacan stated.

Rising import prices, aggravated by a weaker peso, pushed inflation to a close to 14-year excessive in October, cementing expectations of a sixth fee enhance on the Bangko Sentral ng Pilipinas’ (BSP) assembly on November 17.

A 75-basis-point hike gave the impression to be within the bag after the BSP stated on November 3 it should match the Federal Reserve’s three-quarters of a proportion level fee rise to help the peso, which has thus far misplaced 12.3 p.c in opposition to the US greenback this 12 months.

Despite the series of rate hikes, development within the Philippines averaged 7.7 p.c within the 9 months to September helped by the total reopening of the economic system as the federal government repeatedly lifted COVID-19 restrictions from early this 12 months.

Balisacan stated the federal government remained dedicated to combating inflation to guard individuals’s buying energy, together with by tightening financial coverage.

“We can not afford to not modify (charges) with the remainder of the world,” he stated.

Family consumption rose 8 p.c within the third quarter from a 12 months in the past, slower than the earlier quarter’s 8.6 p.c tempo however sooner than the 7.1 p.c development in the identical interval final 12 months, the info confirmed.

“Within the face of surging costs, that’s an enormous upside shock,” stated ING economist Nicholas Mapa.

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