High government spending and export growth are expected to boost GDP growth in the third quarter of the year, according to the National Economic and Development Authority (Neda).
At the sidelines of the Philippine Business Conference on Thursday, Socioeconomic Planning Secretary Ernesto M. Pernia said growth could reach the midpoint of the 6.5-percent to 7.5-percent full-year target in the third quarter.
“The forecast is going to be better than the second quarter,” Pernia told reporters. “The outlook on the global economy has improved, so our exports are increasing and also government spending has been increasing double digits.”
Pernia added that, with “milder” than expected typhoons, the agriculture sector is bound to post better growth in the July-to-September period this year.
“Typhoons have been rather mild, [the weather] has been rather clement, mild compared with previous years. So knock on wood, if we have this kind of weather disturbance, minor weather disturbance, I think agriculture will also be performing better,” he said.
Total exports in the January-to- August period reached $42.11 billion in 2017, a 13-percent growth from the $37.16 billion in 2016.
In July and August 2017, exports amounted to $10.82 billion. This is a 10.16-percent growth from the $9.82 billion posted in 2016.
In August alone, export earnings rose by 9.3 percent to $5.51 billion, from $5.04 billion in the same month of previous year.
Meanwhile, the Department of Budget and Management reported that national government spending increased 9 percent to P1.331 trillion in the first semester of the year.
In the second quarter of 2017, the government spent P715.5 billion, or 13.6 percent higher than P629.8 billion in the April-to-June period last year.
In June 2017 alone, government spending increased 22.6 percent to P270.7 billion, from P220.8 billion in the same period in 2016.