GDP growth slows to 4% in Q3

The Philippine economy grew at its slowest pace in four years in the third quarter, as the flood control controversy weighed on consumer and investor confidence while typhoons disrupted economic activity.

- LOUELLA DESIDERIO

In a press conference yesterday, National Statistician Dennis Mapa said the country’s gross domestic product (GDP) grew by four percent in the third quarter, slower than the previous quarter’s 5.5 percent expansion and the 5.2 growth posted in the third quarter last year.

This also marked the lowest growth since the 3.8-percent contraction in the first quarter of 2021 during the COVID pandemic.

The latest growth outturn brought average growth from January to September to just five percent, below the government's growth target of 5.5 to 6.5 percent for this year.

Department of Economy, Planning and Development Secretary Arsenio Balisacan said that on the supply side, services and industry both posted weaker growth in the third quarter.

In particular, industry grew by only 0.7 percent in the third quarter, the slowest growth recorded since the first quarter of 2021.

Public construction contracted sharply by 26.2 percent in the third quarter as the government implemented stricter validation measures for the Department of Public Works and Highways’ civil works.

Balisacan said the implementation of stricter requirements also led to delays in disbursements for government projects.

Services also grew at a slower pace of 5.5 percent in the third quarter from the previous quarter’s 6.95 percent and 6.3 percent in the third quarter of 2024.