The country's economic growth slowed as expected by 7% in the 3rd quarter, the weakest this year, dragged down by agriculture and exports.
The slowdown also comes amid speculation that the government slowed down spending due to the pork barrel controversy.
In a briefing Thursday, the National Statistical Coordination Board (NSCB) said the economic growth rate was pegged at 7%. But this is slower than the 7.6% growth in the 2nd quarter.
Jonathan Ravelas, chief investment strategist at BDO Unibank told ANC that the slower growth rate was not surprising given the recent natural calamities that hit the country.
"Taking into account the recent calamities and the adjustments we've seen in the 3rd quarter, we've seen the slowdown at around 7%. This is just, I guess, a normal transition. We've been growing in the first half at around 7.6% so I guess the 7% is just a pause," Ravelas said.
The country's gross domestic product (GDP) rate is expected to slow further in the 4th quarter as the devastation wrought by typhoon Yolanda is expected to impact on agriculture, businesses, property and jobs. These factors may make it tougher for government to reduce unemployment, which is one of the highest in Asia despite the country's economy being one of the strongest in the region.
But Ravelas said that for the full year, the country could still end with a 7% or better growth rate.
No comments:
Post a Comment