On a seasonally adjusted basis, GDP rose by 3.3% compared to the previous quarter. The services sector, which encompasses trade of goods and comprises more than half of the economy, saw a growth of 6.8% from the previous year. The industry sector, including manufacturing and construction, increased by 5.5%, while the agriculture sector expanded by 0.9%.
While these figures indicate positive growth, some economists remain cautious about the future. They anticipate sluggish growth in the upcoming months due to weaker external demand and high interest rates. In order to address inflation concerns, the country’s central bank raised its policy rate to 6.50% in late October. This decision was made at an off-cycle meeting to rein in high inflation rates, with the consumer-price index rising by 4.9% in October compared to the previous year.
The Philippine economy’s growth highlights positive developments, but there are concerns that external factors and interest rates may hinder further progress. As the country moves forward, it will be important to balance these challenges in order to sustain a healthy and prosperous economy.
