THE country’s gross domestic product posted a growth of 7.1 percent in the third quarter of 2021.
“This is stronger than expected growth versus the Bangko Sentral ng Pilipinas (BSP) forecast of 6.2 percent,” tweeted BSP Gov. Benjamin Diokno, Tuesday, Nov. 9, 2021.
The BSP chief said “this increases the likelihood that the revised growth projection of four to five percent in 2021 would be exceeded.”
According to a joint statement by the Duterte’s economic team released Tuesday, the 7.1 percent growth in the third quarter “is among the highest third quarter growths in the Association of Southeast Asian Nations and East Asian region.”
“With strong third quarter growth and overall performance in 2021, we are on track to reach the high end of our four to five percent growth target for 2021,” the group said.
Year-to-date growth is currently at 4.9 percent.
The main contributors to the growth were wholesale and retail trade; repair of motor vehicles and motorcycles up 6.4 percent; manufacturing up 6.3 percent; and construction up 16.8 percent.
Among the major economic sectors, industry and services posted positive gains of 7.9 percent and 8.2 percent, respectively.
Meanwhile, agriculture, forestry and fishing posted a contraction of 1.7 percent in the third quarter of 2021 largely due to severe weather disturbances.
Household spending rose 7.3 percent, fixed capital investment jumped 16 percent and government spending soared 13.6 percent.
While net trade was negative, imports outgrew exports. Exports grew by nine percent while imports grew 13.2 percent.
Diokno said “the 13.2 percent increase in imports should be seen in a positive light as a leading indicator of more robust economic activity in the near term.”
“The high growth of imports reflects the strong recovery of consumption and investment spending. The moderate growth of exports reflects both the global recovery as well as global logistics issues,” the joint statement added.
To further sustain growth this year and next year, the group said the government will further accelerate the vaccination program, reopen to Alert Level 1 in January 2022, and maximize the use of the 2021 budget.
The BSP, on the other hand, “will continue to be patient with its accommodative monetary policy stance to support the economy’s full recovery.”