The country’s economic recovery is gaining traction with the better than expected growth seen in the third-quarter, the Department of Finance (DOF) said.
Finance Secretary Benjamin E. Diokno said the 7.6 percent gross domestic product (GDP) in July to September reflected the “many good news lately” under the Marcos administration.
For instance, Diokno cited the country’s rising foreign exchange buffer, or gross international reserves (GIR), which hit $94.1 billion in October from $93 billion in September.
The finance chief also said the peso is strengthening, hovering around 58 per US dollar from a record high of 60.
Moreover, Diokno said current account deficit was narrowing after imports season ended, while the seasonal flow of overseas Filipino remittances is rising.
In the first semester, the current account balance ballooned to a $12-billion deficit from the $1.3-billion in the same period last year.
On the other hand, money sent home by overseas Filipino workers grew three percent in the first eight-months of the year to $20.99 billion from the $20.38 billion a year earlier.
Lastly, Diokno said manufacturers production index remains positive and the highest in the region.
“Overall, the recovery is gaining strong traction,” Diokno said.
Last Thursday, the Philippine Statistics Authority reported that the economy grew 7.6 percent in the third-quarter, up from 7.5 percent previously and 7.0 percent in the same period last year.
At end-September, growth averaged at 7.6 percent.
“There is near certainty that our full year growth assumption of 6.5 to 7.5 percent in 2022 will be attained. We need a GDP growth rate of 3.2 percent in fourth-quarter to attain full year 6.5 percent growth, and 7.2 percent to attain 7.5 percent full year goal,” Diokno said.
All major production sectors registered positive growth in the third-quarter, suggesting a broad-based expansion despite the increase in international and domestic commodity prices.
In particular, growth in the services sector (9.1 percent) was driven by trade and financial and insurance activities, while construction and manufacturing fueled growth in the industry sector (5.8 percent).
Government support to agriculture led to a boost in agricultural output (2.2 percent), driven by higher volume of poultry, livestock, and crop production. This ultimately balanced the decline in fisheries production.
Domestic demand likewise expanded with Household Final Consumption Expenditure (HFCE) grew by 8.0 percent due to continuous recovery of the domestic economy and strong labor market conditions.
Gross capital formation grew also by 21.7 percent, driven by private construction, investment in durable equipment and public construction.
Meanwhile, exports and imports of goods and services grew by 13.1 and 17.3 percent, respectively.