The Philippine economy during the third quarter registered its slowest growth in over a year, as extreme weather patterns adversely impacted the agriculture, industry, and services sectors. The country's gross domestic product (GDP) for this quarter rose by 5.2% year-on-year in Q3, down from the 6.4% growth reported in the previous quarter, as outlined in a release by the Philippine Statistics Authority (PSA).
This growth rate fell short of the 5.7% increase anticipated by analysts surveyed by Reuters. Among various sectors, only agriculture, forestry, and fishing witnessed a downturn during the third quarter, contracting by 2.8% compared to the previous year. In contrast, both the industry and services sectors demonstrated moderate growth, expanding by 5% and 6.3% respectively, as shared by PSA's undersecretary, Claire Dennis Mapa. In a press briefing, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan remarked that the agricultural sector's decline was due to 'the impacts of the El Niño phenomenon during the planting season and the effects of seven typhoons, in addition to the Habagat, during the harvest season.' Balisacan further pointed out that the oil spill incident in July, combined with adverse weather conditions, significantly hampered the fishing and aquaculture sectors, leading to temporary fishing bans and the cancellation of various fishing trips.
Additionally, recent outbreaks of African Swine Fever have adversely affected livestock production. Typhoons have also disrupted both the industry and services sectors, causing administrative delays and supply chain issues. Conversely, the construction sector, along with financial and insurance activities and wholesale and retail trade, notably contributed to GDP growth, registering increases of 9%, 8.8%, and 5.2% respectively, as highlighted by Mapa. Despite the slowdown in GDP growth, Balisacan remains hopeful that the economy will achieve the government's growth target of 6% to 7% for the year, bolstered by anticipated holiday spending in the fourth quarter.
'The economy needs to grow by at least 6.5% to meet the government's target for the last quarter of 2024,' remarked Balisacan, adding, 'We remain optimistic that this growth target is attainable.'.