by: Sarah Joson
Monday, November 16, 2015 |
According to Emilio Neri Jr., lead economist at the Bank of the Philippine Islands, the economy could grow by 6.3 percent in the third quarter, which is faster than the 5.3 percent posted in the same period last year in the midst of the Disbursement Acceleration Program (DAP) issue.
However, the overall growth of the Philippine economy would settle at six percent despite the thriving domestic demand. He noted that the 6.3 percent growth for Q3 will position the country ahead of the ASEAN group. It is a strong comeback from its preceding growth, which is below six percent, as the government continues to improve on spending.
The economist also pointed out that the services sector reinforced growth, with several companies posting remarkable third-quarter earnings. Moreover, the bullish domestic demand and low borrowing costs are seen to boost household consumption and investments.
The industrial sector is also expected to post faster growth and is seen as one of the positive influences to the country’s gross domestic product (GDP) figures as its construction and manufacturing segments continue to post decent growth.
He also noted that the predicted stronger third quarter growth could be the highlight of this year, and the fourth quarter needs to surpass the strong 6.9 percent last year, which was then changed to 6.6 percent.
But the economist is not discounting the possibility of a six percent GDP growth for 2015 as the country continues to prepare for the 2016 presidential elections.
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