Philippine economic growth slowed to just 3.2% in the third quarter as a result of weakness in the agriculture sector due to a heavy typhoon season and a drop in construction activity.
The growth rate was down from last year’s 7.3%, but was better than the 3.1% growth logged for the second quarter of this year. The economy has grown by only 3.6% since the beginning of 2011, compared with 8.2% growth in the same nine-month period last year.
Socioeconomic Planning Secretary Cayetano W. Paderanga, Jr. said that the targeted growth rate of 4.5-5.5% result will be difficult to achieve. Most private sector analysts were less diplomatic, stating that the targeted growth rate will be impossible to achieve this year.
On the bright side, the Philippine service sector continues to meet and exceed growth projections. Services now account for nearly 45% of GDP and grew in the third quarter by 5.3%.
Also on the bright side, the government announced plans to move forward with multiple infrastructure projects next year, which could boost construction spending.
Find more like this: Philippine Economy, Public-Private Partnership
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