Q3 growth revised downward to 6%

MANILA, Philippines — The gross domestic product (GDP) growth figure for the third quarter of 2018 was revised downward to six percent from 6.1 percent on the slowdown in several sectors, the Philippine Statistics Authority (PSA) reported yesterday. 

This downward adjustment was brought about by lower growth in manufacturing; trade and repair of motor vehicles, motorcycles, personal and household goods; and financial intermediation.

PSA said it revised the GDP estimates based on an approved revision policy consistent with international standard practices on national accounts revisions.

The revised third quarter growth figure tracks the second quarter growth rate which was revised upward to 6.2 and seven percent in the third quarter of 2017. 

Elevated inflation eroded the purchasing power of Filipinos in the third quarter of 2018, affecting household demand for goods and services. 

Headline inflation spiked to a near-decade high of 6.7 percent in September before stabilizing in October, fuelled by strong growth in food prices that made up half of the headline rate. 

Since then, the government has enforced several non-tariff measures to increase the supply of key foodstuff and curb the growth of consumer prices. 

On the supply side of the economy, the agriculture sector also continued to be the laggard among three major industry groups, posting a measly 0.03 percentage point contribution to third quarter GDP. 

The farm sector declined 0.4 percent in the third quarter from a growth of 2.6 percent in the same period the prior year due to the successive typhoons that dumped excessive rainfall, delaying the planting decisions of farmers. 

The third quarter of the year also covered the continued closure of Boracay Island – a major tourism draw – which reopened to tourists only on Oct. 26.