PH economy fared better in Q3–Moody’s

The Philippines’ economy accelerated in the third quarter of the year, lifted by higher levels of government spending and steady consumer demand, Moody’s Analytics said.

The boost from the public sector, however, was likely offset slightly by weak exports—a result of thin demand due to lackluster economic conditions overseas.

“Higher government spending was likely the main driver and provided a further boost to investment over the quarter,” said the think tank. The firm is an affiliate of credit rater Moody’s Investor Service.

Official fiscal reports showed the government stepped up stimulus after weakness earlier in the year threatened the Philippines’ record of impressive growth. Due to below-target levels of disbursements, the economy grew by 5.6 percent in the second quarter of the year, slower than the 6.7-percent expansion recorded in the same three months of 2014.

For the first half, growth stood at 5.3 percent, weaker than the 6.1 percent posted for all of last year. The Philippines was the third-fastest growing major Asian economy during the period, trailing China and Vietnam.

Moody’s said in July to September of 2015, gross domestic product (GDP) likely expanded by 5.8 percent, a slight acceleration from the previous three months. GDP data for the third quarter will be released on November 26.

The main drag to the country’s performance in the third quarter was weak demand for Philippine exports, the firm said.

“Exports remained a weak point on weakened global demand, especially from China, an important trading partner of the Philippines,” the firm said.