November 27, 2014

Philippines Q3 2014 GDP Growth Lower than Expected


The 2014 third quarter (Q3) actual Gross Domestic Product (GDP) data, ended up lowered than the Philippine Economist forecast. Actual GDP data from the government statistics posted 5.3% growth, while Philippine Economist recent forecast is 6.29% (previous forecast is 5.72% see article Quarterly Forecast: Philippines Economy in 2014)

As discussed earlier, the slowdown in GDP growth is related to government expenditure, overseas Filipino workers slowdown due to international economic problems, energy cost, and port congestion.

Philippine Economist fourth quarter (Q4) forecast is 6.8%. Full year 2014 GDP forecast was adjusted to 6.03%.

One of the factors that could have affected the GDP growth in Q3 was the increased in basic food prices. This resulted to slowdown in consumption of goods; household expenditure decline to 5.2% in Q3 2014 from 6.2% previous quarter last year.

A stable price has a significant role to play in economic growth.

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