The country’s economy grew by 7.6 percent in the third quarter, faster than the 7 percent recorded a year ago, according to data released by the Philippine Statistics Authority (PSA) on Thursday.
PSA data showed that among the sectors, Services again buoyed the economy. It expanded by 9.1 percent, compared to the 8.2 percent recorded a year ago.
Data from the PSA also indicated that Industry recorded a 5.8-percent growth, slower than last year’s 7.9 percent.
The Agriculture, forestry and fishing sector inched up by 2.2 percent in the July to September period, compared to 1.2 percent a year ago.
The performance of the economy during the period, Socioeconomic Planning Secretary Arsenio M. Balisacan said, can be attributed to the easing of mobility and the reopening of schools for face-to-face classes last August.
“This economic performance largely benefitted from the further easing of mobility, including the resumption of face-to-face classes, which boosted consumption among Filipinos. The relaxation of border restrictions and more simplified travel protocols also supported the growth of local tourism and other sectors severely affected by the pandemic, leading to economic expansion in the third quarter,” Balisacan said.
The latest GDP data boosts the case for the central bank to tighten monetary policy further to contain inflation amid a sustained demand recovery.
The Philippine stock index rose briefly after GDP beat estimates before giving up gains, while the peso fell 0.3 percent to 58.170 per dollar at 10:56 a.m. local time tracking weakness in regional peers.
Output grew 2.9 percent last quarter from the April to June period, despite inflation in the July-September period far exceeding the central bank’s 2 percent-4 percent target. Consumer spending during the period rose 8percent from a year ago, supported by a strong demand recovery. With a report from Bloomberg News