The Philippine economy sustained its growth momentum in 2013 even as the economy experienced pockets of turbulence brought about mainly by uncertainty in the external environment. For the first three quarters, GDP increased by 7.4 percent, higher than the 6.7 percent in the same period in 2012. Growth was boosted by the strong performances of services, manufacturing and construction sectors. On the expenditure side, growth came mainly from consumer and public spending as well as increased investments in fixed capital (i.e., construction activities and investments on durable equipment). Indeed, the economy has continued to run on all cylinders. More important, economic growth has been supported by key policy reforms as well as sound macroeconomic policies. The continuation of structural reforms and prudent economic and financial policies is expected to make a difference in 2014 and beyond.