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Sunday, March 3, 2024

Moody’s unit sees faster PH growth in Q3

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Moody’s Analytics, which operates independently of the Moody’s Investors Service credit rating agency, said Monday the Philippine economy likely grew faster in the third quarter compared with the 4.3-percent expansion in the second quarter on the back of higher government spending.

It said in a report the gross domestic product likely expanded by 5.1 percent from July to September.

“We look for a 5.1 percent year-on-year reading, an improvement from the 4.3 percent growth in the prior quarter,” it said.

“We expect government spending to lift on account of state agencies stepping up the implementation of certain projects,” it said.

The Philippine Statistics Authority will release the official third-quarter GDP data later this week.

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Moody’s Analytics said higher inflation and interest rates would continue to affect consumer spending.

Inflation peaked at 8.7 percent in January 2023 before easing in the next six months. Higher food prices spiked again in August to 5.3 percent and 6.1 percent in September.

The Bangko Sentral ng Pilipinas said last week the October inflation likely settled within a range of 5.1 percent to 5.9 percent.

BSP Governor Eli Remolona said inflation and the third-quarter GDP data are two economic indicators they would consider in the next monetary policy setting.

The interagency Development Budget Coordinating Committee said last week government disbursement accelerated significantly from 93.4 percent of the program as of June 2023 to 98.9 percent as of September.

The DBCC said disbursement reached P3.82 trillion as of end-September.

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