(Bloomberg) -- Economic growth in the Philippines accelerated in the third quarter as the government overcame its spending bottlenecks.
Gross domestic product expanded 6.2% from a year earlier, higher than the 6% median estimate in a Bloomberg survey of economists. Growth quickened from 5.5% in the second quarter, when budget delays put a brake on government spending.
Key Insights
- The government sped up its plans after the budget was approved in April, including round-the-clock construction for some of its projects
- With public spending reaching a record-high in the third quarter, the government expects to hit the low end of its 6%-7% growth target this year
- Central bank Governor Benjamin Diokno has signaled no further monetary policy easing this year, saying it’s done “more than enough” to support the economy. Bangko Sentral ng Pilipinas cut its policy rate by a total of 75 basis points and will take the reserve ratio down by 400 basis points by December