Public spending boosted economic growth—DBM
At A Glance
- The Department of Budget and Management (DBM) said stronger-than-expected economic growth due to increased public spending from July to September.<br>Government spending in the third quarter contributed 36 percent (2.1 percentage points) to the Philippines' 5.9 percent GDP growth.<br>Government final consumption expenditure rose from -0.7 percent in the second quarter to 6.7 percent in the July-to-September period.<br>Government fixed capital formation increased from 0.7 percent in the second quarter to 6.7 percent in the third quarter.<br>National Economic Development Authority Secretary Arsenio M. Balisacan commended government agencies and local government units for implementing catch-up expenditure plans.<br>Circular Letter No. 2023-10 was released, ordering government agencies to produce catch-up plans to address underspending in the second quarter.<br>The Philippines' third quarter GDP growth of 5.9 percent was the highest among major emerging economies in Asia.
The Department of Budget and Management (DBM) reported that higher public spending from July to September this year greatly contributed to a stronger-than-expected economic growth.
Budget Secretary Amenah F. Pangandaman said the accelerated government spending in the third quarter contributed 36 percent, equivalent to 2.1 percentage points, to the Philippines' 5.9 percent gross domestic product (GDP) growth.
From a negative 0.7 percent during the second quarter of the year, the government final consumption expenditure rose to 6.7 percent in the July-to-September period.
Meanwhile, the government fixed capital formation made a huge leap from 0.7 percent in the second quarter to 6.7 percent in the third quarter.
National Economic Development Authority Secretary Arsenio M. Balisacan commended government agencies and local government units for responding to the economic team’s call to implement the catch-up expenditure plans.
“These actions addressed the contraction in government spending in the previous quarter. We hope to maintain this momentum for the remainder of the year and the years to come,” Balisacan said.
Last Aug. 9, the DBM released Circular Letter No. 2023-10 that ordered all government agencies to produce catch-up plans to address the underspending during the second quarter.
“I am confident that as we work together in unity and with our whole-of-government approach, we will remain on track with our Agenda for Prosperity,” Pangandaman said.
Pangandaman also extended her gratitude to President Marcos, who, according to her, has been on top of the catch-up plans and personally called for a Cabinet meeting to ensure that "we improve our economic performance.”
Meanwhile, she noted that the third quarter’s 5.9 percent growth makes the country's economy the fastest among the major emerging economies in Asia.
The latest GDP rate is higher than Vietnam at 5.3 percent, Indonesia and China at 4.9 percent, and Malaysia at 3.3 percent, which also released their third quarter performances for the same period.
"We would like to thank President Marcos who has been on top of the catch-up plans and personally called for a Cabinet meeting to ensure that we improve our economic performance,” Pangandaman said.
“We would also like to thank and congratulate our National Government Agencies as we can see from this that the catch-up plans have already contributed to the improvement in GDP," she added.