Palace welcomes economic growth, cites improved gov’t spending

Malacañang on Thursday welcomed the recent growth in the country’s Gross Domestic Product (GDP), which expanded by six percent for the third quarter of 2015.

“We welcome the latest report of the National Economic Development Authority (NEDA) that the country’s GDP grew by six percent for third quarter of this year. Based on initial reports, the Philippines’ economic growth is the third fastest in Asia after China at 6.9 percent and Vietnam at 6.8 percent,” Communications Secretary Herminio Coloma said in a statement.

“We affirm NEDA’s view that the country will attain its full-year GDP growth of 6.0 percent due to better economic prospects in the last quarter of the year,” he added.

READ: PH economy grew 6% in Q3 | Despite underspending, Santiago hits Palace for ‘bloated, ambitious’ 2016 budget

Coloma said the third quarter GDP growth, the fastest pace so far this year, was mainly spurred by “improved” government spending, which he said “significantly” increased from 3.9 percent in the second quarter to 17.4 percent.

“This is in line with President Aquino’s directives to the Executive Branch to improve effectiveness in budget execution through vigorous implementation of priority development programs,” he said.

Coloma said the government will intensify efforts during the last quarter of the year to address challenges posed by “extrinsic factors,” including a severe El Niño phenomenon which will linger until the first quarter of 2016.

“President Aquino is firmly committed to achieve inclusive growth through continuing investments in public infrastructure and human capital development anchored upon good governance,” he added.

The latest GDP growth was higher than the five percent registered by the country in the first quarter and the adjusted 5.8 percent in the second quarter. The figure also exceeded the dismal 5.3 percent-growth posted in the third quarter of 2014, which was blamed on government underspending.

While the government’s official GDP growth target this year is between seven to eight percent, economic managers previously said the economy could expand at a “realistic” range of only 6-6.5 percent in 2015.

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