The economy was expected to have continued its robust pace of growth and expanded by at least 7 percent in the third quarter following the sustained rise in investments and consumption, the National Economic and Development Authority said.
According to the Neda, there were no developments in the three months to September that could have disrupted the speedy expansion pace seen in the first two quarters.
“There were no negative events that could have dragged growth,” Neda Director General Arsenio Balisacan told reporters Friday at the sidelines of a partnership ceremony between Ayala Corp. and the UP School of Economics (UPSE).
Ayala and the UPSE have agreed to hold a series economic forums over the next three years to discuss pressing economic concerns of the country.
The Philippines, together with China, registered the fastest growth rates in Asia of 7.7 percent in the first quarter and 7.5 percent in the second quarter. This prompted government economists to project that the full-year target of between 6 and 7 percent would definitely be exceeded.
Growth drivers cited were the rise in government spending for infrastructure, strong household consumption and investments in the manufacturing sector.
Consumption was credited partly to remittances from overseas Filipinos who continued to send money home despite economic problems in industrialized countries where they work.
Rising investments in manufacturing was a fairly new development credited to improved business climate.
The Philippines this year secured investment grades from three major international credit-rating agencies after being rated junk all throughout its history.
Credit rating firms cited the improvement in the government’s fiscal situation, rising foreign exchange reserves and stable banking system, benign inflation and robust economic growth.
Neda Deputy Director General Emmanuel Esguerra said that based on the leading economic indicators (LEI), growth in the 7-percent territory was highly probable for the third quarter.
“Growth of at least 7 percent is sustainable,” he said in a separate interview at the sidelines of the same event.