MANILA, Philippines – The Philippines’ economic growth likely slowed down in the third quarter of 2013 on account of lower government spending, according to Moody’s Analytics.
In its Asia-Pacific Preview this week, Moody’s Analytics said Philippine gross domestic product (GDP) could have grown 7% in the July to September quarter, slower than the previous quarters.
“We may see a modest pullback in government investment, and GDP growth will likely slow, but only slightly,” the firm said.
Figures for the first two quarters brought first-half GDP growth to 7.5%, higher than the government’s full-year target of 6% to 7%.
Moody’s Analytics said the Philippines continued to be “one of the world’s fastest-expanding economies” in the September quarter.
“The high‐frequency data have been strong, with industrial production, bank lending and money supply surging ahead,” it said. “Domestic confidence and demand have remained firm.”
But massive destruction caused by Typhoon Yolanda (Haiyan) will “alter” the fourth-quarter picture, Moody’s warned.
Balisacan forecast 2013 GDP to settle between 6.5% and 7%. He said the typhoon’s negative impact may linger in 2014 due to “reduced production capacity.”
Yolanda, one of the world’s strongest typhoon on record, battered the Visayas region on November 8, wiping out entire towns, killing thousands of people and displacing hundreds of thousands more. Disaster experts overseas estimated losses from the typhoon to reach up to $15 billion.
The government will release third-quarter GDP data on Thursday, November 28. – Cherrie Regalado/Rappler.com