The Philippines: Exports recovery, higher government spending to boost 3Q17 growth: NEDA

  • Economic growth in 3Q17 is expected to receive a boost from rising exports, increased government spending and recovery in the global economy, Socioeconomic Planning Secretary Ernesto Pernia said.
  • The agriculture sector is also expected to sustain its recovery as typhoons that visited the country have been less destructive.
  • The economy grew 6.5% in 2Q17, driven by strong gains in the industry sector and the turnaround in the agriculture sector, slightly faster than the 6.4% in 1Q17 but slower than the 7.1% growth in 2Q16.
  • This brings 1H17 growth to 6.4%, down from 7.0% in 1H16. To meet the lower end of the full-2017 target growth of 6.5-7.5% for 2017, the economy only has to grow by 6.5% in the succeeding quarters.
  • Exports extended their growth trajectory for the ninth consecutive month in Aug 17, driven by double-digit growth in shipments to ASEAN, EU and other Asian trade partners. Exports rose 9.3% to USD5.51bn during Aug 17 from USD5.04bn in Aug 16.
  • For Aug 17 alone, government spending on projects rose 14% to PHP201.6bn from the PHP177bn in Aug 16.

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