The Philippine Statistics Authority (PSA) has revised downwards the economy’s third quarter growth figure, as it took into account revisions made in some sectors.
The PSA said in a statement posted on its website yesterday the third quarter 2019 gross domestic product (GDP) growth rate was slashed from 6.2 percent to six percent.
The first and second quarter growth rates were 5.6 and 5.5 percent, respectively, thus the year-to-date GDP is 5.7 percent.
This means that the Philippine economy will have to post a growth of 6.9 percent for the fourth quarter alone to hit the lower end of the government’s projection for the full year of 2019 of six to 6.5 percent growth.
The PSA and the National Economic and Development Authority are set to announce the fourth quarter and full-year 2019 figures at 10 a.m. today.
“Major contributors to the revision were other services, from 5.1 percent to 4.2 percent; construction, from 16.3 percent to 15.4 percent; and transport, storage and communication, from 9.1 percent to 8.2 percent,” the PSA said.
On the other hand, net primary income from the rest of the world and gross national income recorded upward revisions from 2.9 percent to 3.9 percent and from 5.6 percent to 5.7 percent, respectively.
The PSA said it revises the GDP estimates based on an approved revision policy which is consistent with international standard practices on national accounts revisions.
Late last year, the interagency Development Budget Coordination Committee said the GDP growth target is projected at six to 6.5 percent for 2019 and 6.5 to 7.5 percent in 2020 to 2022.
Meanwhile, in a 2020 economic outlook briefing yesterday, Ivan Ante, global multi-asset portfolio manager of ATR Asset Management Inc., said the 2019 GDP is expected to be 5.9 percent, with growth recovering this year to 6.3 percent.
Both figures fall below the government’s estimates.
“Last year, GDP disappointed because government did not spend (in the first part of the year). But this year, we think all the unspent budget last year will be spent this year. At the same time, the new budget will be also spent. So imagine the growth will be boosted,” Ante said in the briefing held in Makati City.
“So, we expect GDP to grow 6.3 percent this year. Where will it come? From robust consumption, which is the first pillar of growth. And the second is a comeback of government expenditure,” he added.
