Phl GDP expands by 7% in third quarter

MANILA, Philippines - The Philippine economy grew by 7 percent in the third quarter of the year, slower than the revised 7.6-percent growth registered in the previous quarter.

The third quarter performance brings the country's economic growth to 7.4 percent for the first nine months of the year, higher than the 6.7 percent posted in the comparable period last year.

The National Statistical Coordination Board said on Thursday that the economic expansion was driven mainly by the services sector with strong performance from the real estate, renting and business activities, trade and financial intermediation. The industry sector also contributed strongly to the economic growth.

Meanwhile, on the demand side, the boost came from increased investments in fixed capital, reinforced by consumer and government spending and strong growth in external trade.

"We would still expect GDP (gross domestic product) for the full year to come close to 7 percent," Socioeconomic Planning Secretary Arsenio Balisacan said.

He added that the Philippines remains to be the fastest growing economy among the middle economies of Southeast Asia, but admitted that the destruction caused by typhoon Yolanda will have a big effect to the Philippine economy.

"It's quite substantial," Balisacan said, adding that the regions of Eastern Samar, Panay and Central Visayas contribute as much as 12 percent to the country's overall economic growth. He said the typhoon may negatively affect the fourth quarter GDP growth between .3 and .8 percent.

Balisacan said the effects of the recent disaster depends on how quickly the government can rehabilitate and restore economic activies in the affected communities.

"The intention is to get normalcy as quickly as possible," he said.