The Philippine economy grew by four percent in the third quarter this year, according to the Philippine Statistics Authority (PSA).
This brings the year-to-date average gross domestic product (GDP) to 5 percent, which is below the government’s target range of 5.5 to 6.5 percent.
The 4 percent growth rate of the economy in the third quarter was slower than the 5.5 percent in the second quarter this year and the 5.2 percent in the third quarter of 2024.
On the supply side, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan said services and industry posted ‘weaker growth’ with a sharp contraction in public construction due to ‘stricter’ validation measures for DPWH’s civil works.
The country’s socioeconomic planning chief said this is also due to the implementation of stricter requirements that delayed billings and disbursements for government projects.
On the demand side, he said household consumption growth slowed to 4.1 percent.
‘Widespread cancellations of school, work, and travel activities due to typhoons likely dampened spending,’ Balisacan explained.
Moreover, the DEPDev chief said consumer confidence may have been affected by the ongoing probes and discussions on government infrastructure spending, prompting many households to postpone purchases, especially durable goods.