Q3 GDP growth revised to 6%

A vendor arranges dried fish at a stall in Manila, Aug. 10, 2023. — Edd Gumban, The Philippine Star

THE PHILIPPINE economy expanded by 6% in the third quarter, slightly faster than initially reported, according to the Philippine Statistics Authority (PSA).

The PSA upwardly revised the country’s gross domestic product (GDP) growth rate to 6% from the 5.9% reported in November last year.

This brought the growth in the first three quarters to 5.6% from 5.5% initial estimate.

The upward revision came ahead of the fourth-quarter and full-year 2023 release of GDP data today (Jan. 31).

Philippine GDP likely expanded by 5.7% in the fourth quarter, based on a BusinessWorld poll of 20 economists. If realized, this would be a tad slower than the third quarter’s revised pace and the 7.1% growth in the final three months of 2022.

The BusinessWorld poll yielded a 5.5% full-year estimate, falling below the government’s 6-7% target growth for 2023.

Should this materialize, it would be slower than the 7.6% growth recorded in 2022.

To meet the lower end of the government target, the Philippine economy should have expanded by at least 7.2% in the fourth quarter.

The PSA said that the main sources of upward revision of the third-quarter print were manufacturing (5.1% from 4.5%), financial and insurance activities (9.6% from 9.5%), and accommodation and food service activities (21% from 20%).

On the expenditure side, private consumption’s third-quarter growth was revised upwards to 5.1% from 5% previously. Government spending was maintained at 6.7%.

Meanwhile, the net primary income from the rest of the world was revised downwards to 111.6% from the preliminary 112.5%.

On the other hand, gross national income for the third quarter was kept at 12.1%.

National account revisions are based on approved revision policy, which is consistent with international standard practice, the PSA said. — Andrea C. Abestano