THIRD-QUARTER economic growth slowed more than initially reported, with several sectors having posted weaker results, the Philippine Statistics Authority (PSA) reported on Wednesday.
Gross domestic product (GDP) growth for the July-September period was lowered to 3.9 percent from the 4.0 percent announced in November, the PSA said ahead of today’s release of preliminary fourth-quarter and full-year data.
The revision was said to be primarily due to three sectors:
– electricity, steam, water and waste management, which instead of growing 0.6 percent contracted by 0.6 percent;
– real estate and ownership of dwellings, which grew by a lower 4.0 percent and not 4.7 percent; and
– accommodation and food service activities that also posted slower growth of 4.8 percent from the preliminary 5.7 percent.
Gross national income growth was also lowered to 5.4 percent from 5.6 percent, along with that for net primary income from the rest of the world, which was revised to 16.2 percent from 16.9 percent.
The PSA said the growth data was revised based on policy aligned with international standards for national accounts revisions.
The lower third-quarter GDP figure again underscored the impact of a massive flood control project scandal on the country’s economic growth.
The first-half expansion was just under the 2025 target of 5.5-6.5 percent, but the chances of hitting at least the bottom end all but evaporated as the corruption issue led to private and public spending cuts.
Economists expect full-year growth to have slowed to 3.7 percent, markedly lower than 2024’s 5.7 percent.
The government has acknowledged the impact of the still-unresolved scandal and has lowered the GDP targets for this year and the next to 5.0-6.0 percent and 5.5-6.5 percent, respectively, from 6.0-7.0 percent.
