CNA – The Philippine economy grew at a faster-than-expected clip in the third quarter, but the government said the recovery is not without risks given rising interest rates and soaring inflation that could crimp consumer spending.
Underpinned by pent-up domestic demand, the economy expanded 7.6 per cent in the third quarter from a year earlier, official data showed yesterday, far outpacing the 6.3-per-cent forecast in a poll and faster than the 7.5-per-cent growth in the second quarter.
The economy would likely grow above the government’s 6.5 per cent-7.5 per cent growth target for 2022, Economic Planning Secretary Arsenio Balisacan told a media briefing.
On a quarterly basis, gross domestic product rose 2.9 per cent versus a 0.1-per-cent contraction in April-June and an expected one per cent rise, the data showed.
“While these developments are remarkable, I want to underscore that our nation still faces a considerable burden in the form of high inflation,” Balisacan said.
Rising import costs, aggravated by a weaker peso, pushed inflation to a near 14-year high in October, cementing expectations of a sixth rate increase at the Bangko Sentral ng Pilipinas’ meeting on November 17.
