Philippines Q3 Growth Likely at 6.9%

A unit of Moody’s Corp. said Philippines growth may have eased in the third quarter amid the soft global demand.

Moody’s Analytics said the economy likely grew 6.9% in the third quarter, slightly slower than 7% growth in the second quarter, NewsNow reported.

The research arm of Moody’s said exports further slowed down in the third quarter amid the slowdown in nickel shipments due to the crackdown being undertaken by the Department of Environment and Natural Resources.

“Exports likely slowed in the quarter. This is partly a result of subdued global demand. In addition, nickel exports will be dented by the temporary closure of several mines due to compliance issues,” Moody’s Analytics said in its Asia Pacific Preview.

The country’s GDP has posted positive growth over the past 70 quarters due to robust domestic demand.

“The main drivers of the economy will continue to be domestically focused, with private consumption, investment and government spending all expanding rapidly,” it said.

Socioeconomic Planning Secretary Ernesto Pernia earlier said the country’s GDP likely grew between 6.3% and 7.3% in the third quarter amid higher government spending on infrastructure.

The National Economic and Development Authority is set to release the third quarter GDP statistics on Nov. 17.

The third quarter is the first full quarter under the leadership of President Duterte who assumed office last June 30.

The GDP growth zoomed to 7% in the second quarter amid the boost from election related spending from 6.8% in the first quarter of the year.

This brought the average GDP expansion to 6.9% in the first half of the year from 5.5% in the same period last year.