An economist of DBS Bank Ltd. forecasts a 6.5 percent output for the Philippine economy in the third quarter of 2017, the same as the previous quarter’s performance.
In a research note Monday, DBS Bank Group Research economist Gundy Cahyadi said upside risks on gross domestic product (GDP) are expected, citing the 19.9 percent expansion of bank loans in the third quarter alone.
“This is indicative of strong domestic demand, even if the high base effects may mean investment growth is likely to have eased to 6.6 percent in the period,” he said.
“We expect consumption growth to also remain strong at 6.3 percent, partly supported by robust remittances flows, which are on track to reach a record-high of USD28 billion this year,” he added.
The National Economic and Development Authority (NEDA) is scheduled to announce the figures for the third quarter growth on Thursday, Nov. 16.
Growth in the second quarter this year slightly went up from the previous quarter’s 6.4 percent, but is lower than the 7.1 percent in the second quarter of 2016.
It was boosted by manufacturing, trade, real estate, renting and business activities.
The industry sector posted the highest output at 7.3 percent followed by agriculture, which recovered and hit a 6.3 percent growth from a two percent decline in the previous year.
Services remain robust with a 6.1 percent growth but is slower than the 8.2 percent growth in the second quarter of 2016.
In the first half this year, growth averaged at 6.4 percent, slightly below the low-end of the government’s 6.5 to 7.5 percent target for the year. (PNA)