Metro Manila (CNN Philippines, January 22) — The economy grew by just 6 percent in the third quarter of 2019, the Philippine Statistics Authority (PSA) said Wednesday, slower than the 6.2 percent pace initially reported.
The data revision came a day before the government releases full-year data on economic growth and domestic activity on Thursday.
The revised figure brought the pace of growth farther from the government’s goal of a 6-6.5 percent expansion this year, with the running average slipping to 5.7 percent.
The third-quarter growth, however, is faster than the 5.9 percent climb reported during the same period in 2018, data showed.
In a statement, the PSA said the downward revision came following slower than reported expansion in the outputs of 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).
Despite the slower pace, construction saw a big jump from a mere 5.4 percent climb in January-March and even a contraction from April-June.
The third quarter performance remained the best showing for the Philippine economy so far in 2019. The delayed passage of the national budget coupled with the halt in public works ahead of the May elections stunted growth during the first semester, economic managers have said.
Authorities are counting on increased domestic activity between October to December last year to pull up growth, with agencies saying that their catch-up plan for delayed spending would boost domestic activity.
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Construction activity has expanded by an average of 11.7 percent for the first nine months of 2019, slower than the 18.4 percent growth tallied the previous year.
Socioeconomic Planning Secretary Ernesto Pernia said on Monday that he expects a growth rate of at least 6.6 percent during the fourth quarter. He added that the outlook remains “hazy” for 2020 amid global threats, although most economic institutions believe the Philippine economy would perform better this year.
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