Tuesday , November 24 2020

Growth of Gross Domestic Product in Q3 Increases BusinessWorld



Bye now
The main driving force of the economy is the slowdown in growth of economic and business investments – the main problem of the state economic planners.

Ilyas Joseph Tubayan
Reporter

According to the Philippine Statistics Institute (PSA), Thursday, the last three years, PHILIPPINE ECONOMIC PRODUCTION LOSS.

Gross Domestic Product (GDP) – the total volume of final goods and services produced in the country in July-September increased by 6.1% as compared to the previous year by 7.2% as compared to 6.2%. In July-September of the last year growth made up%.

Quarterly Productivity of Domestic Product (in the third quarter of 2018) "width =" 1024 "height =" 615

In the third quarter, growth was 6.3% more than the median score BusinessWorldLast week, a survey of 15 analysts has been completed and has been at a slow pace since the second quarter of 2015, making up six percent.

Gross domestic product growth in the first three quarters was 6.3%, down from 6.8% in the same period of 2017 and below the targeted level by 6.5-6.9% in 2018.

Secretary for Socio-Economic Planning Ernesto M. Pernia said at the briefing that the economy will grow by at least seven percent this quarter.

Gross Domestic Product – Gross Domestic Product and Gross Domestic Product Growth – in the last quarter was 5.9% in April-June, but slowed down to 7.3% year-on-year.

Mr. Pernia noted that the growth of the third quarter was "prestigious", less than seven percent of Vietnam and 6.5 percent of China, but faster than in Indonesia at 5.2 percent.

In addition, the Philippines has secured at least six percentage points in the last 14 quarters, "he added.

According to economic managers, "the growth rate of 6.1% is not fully stated," says Perneja. "We are worried about the growth rates in the third quarter – not because it is unexpectedly … 6.3% … because it's a far more difficult task than one year … On the contrary, the slowdown in household consumption, in particular, on food and due to a significant slowdown in other major food costs.

The final consumption expenditures of households in the last quarter amounted to 5.2%, a 5.4% increase over the previous year and 5.9% in the second quarter. Mr. Pernia noted that domestic demand is expected to return to the fourth quarter of the big holiday season.

The slowdown in GDP growth in the third quarter was due to high inflation, which was 6.6% in the middle of three months after September and October, which is higher than 6.7%.

The government has struggled against the sale of foodstuffs by applying non-tariff measures to increase food prices, especially food.

Also, from the decade of import quotas for rice imports, imports of all private groups have been switched off, with the aim to reduce the retail price to P7 per kilo and the inflation rate to 0.7 percentage points.

The government's positive growth rate in demand has increased to 14.3% in the third quarter, from 8.3% in the third quarter to 11.9% in the second quarter.

Capital formation in September has grown by 16.7% in September, down from 10.3% in the same period last year and by 21.5% in April-June.

The increase in exports of goods and services decreased from 18.8% to 14.3% compared to the previous year but was higher than in the previous quarter by 12.6%.

On the other hand, imports increased by 18.9%, slightly slower than last year's 17.2%, but in April-June, it was at a speed of 18.5%.

Sectoral service has grown by 6.9% in the third quarter, down from 7.3% since the beginning of the year and slightly exceeding 6.8% in the second quarter, becoming the driving force of the economy.

However, the industry has slowed down from 8.1% to 6.2% last year and up to 6.5% in the 2nd quarter, as Pierre said that revenue costs were high. In the third quarter of the year, industry continued to make a significant contribution to the expansion of the industry, but continued to increase from 10.1% in July to 4% in 2017 and 5.5% in the second quarter. Construction increased from 4% to 16.1% last year and 14.1% in the second quarter. Mining and quarrying decreased by 1.1% compared to last year's 7.9%, but 6.9% lower than in the second quarter.

Agriculture, hunting, forestry and fishing decreased by 0.4% to 2.6% in the third quarter of the previous year and 0.3% in the second quarter.

Financial Secretary Carlos G. Domineez III stated that the economy is expected to recover its achievements in order to support the rapid processes in the backdrop of the "financial stability of the infrastructure and social services" … the growth dynamics will be closer to achieving the goals set by the government in 2019 and will make more managerial efforts to further reduce inflation , as the government implements large ticket infrastructure projects on the "Construction, Construction, Construction" initiative in the coming months. There are plenty of political reforms to make domestic economies more accessible to investment ".

According to private sector economists, yesterday, in some comments, GDP growth in the third quarter was followed by a soft policy of the Central Bank following the last two policies on November 15 and December 13.

Nicholas Antonio T., Senior Economist at ING Bank NV Manila According to Mapa data, GDP growth data "pills" to invite puppies to a break in a cash summit on November 15 next week, and may generate a 150 per cent base rate of growth since May, potentially consuming and investing.

"The Philippine economy would provide tranquility to breathe breathing and restoration of the high-level six-percent growth trajectory in the fourth quarter," he said. he explained.

Senior economist of the Bank of the Philippines of the Philippines Ruben Carlo. Asuncion: "BSP is made at the angle of 2018," said that the impact of the depreciation could be prolonged for a year.

Economists from ANZ Research believe, on the other hand, that some spaces remain in place to further increase interest rates: "It is possible that the yield can be gradual, as we think the highest inflation rate."

"In our opinion, further policy is needed. In this regard, the final rate of the Central Bank's December meeting is expected to reach 4.75% by 25 basis points.

Regardless of the rates of economic activity growth, despite the fact that the high level of inflation and money supply continue to be economic activity, there is a steady increase in this quarter.

"The rate of growth of the BSP rate will hinder household consumption in the next quarter, and GDP growth will reach about 6 percent in the fourth quarter," said Rajiv Biswas, chief economist at IHS Markit Asia-Pacific region.

"However, the Philippine economy will grow by about 6.2% in 2019 and is based on the growth of the construction industry, which will facilitate the government's growth of infrastructure costs under the" Construction, Construction, Construction "program. . «

The Economist of the Philippines Phillips Ganiel Angelo "The increase in consumer spending has been spent in the last three quarters," he said. "By the end of the year, inflation is expected to slow down, with some increase in consumer spending and improvement of capital formation this quarter. It can increase by at least 6.3% in the last three months ".

"Forward, growth may have the same formula by reducing consumption through government spending and investment," Mora said. "Public spending may rise before mid-term elections."


Source link