Economic Outlook

2016 Philippine Economic Outlook

3Q’16: PH GDP Growth Momentum Sustained at 7.1%


Strong growth was in 3Q’16 as GDP expanded 7.1% yearon- year (YoY), following 7.0% YoY growth in 2Q’16 and 6.8% YoY growth a year ago in 1Q’15. As a result, the Philippines remained one of the fastest growing economies in the region. China followed at 6.7%, Vietnam at 6.4%, Indonesia at 5.0%, Malaysia at 4.3%.


Disaggregating by expenditure share, investments posted the strongest growth at 20.0%, which is still strong despite being lower than 25.0% in 2Q’16 and 26.6% in 1Q’16. Consumption, the biggest component of GDP, also increased a healthy 7.3% YoY (2Q’16: 7.4%, 1Q’16: 7.0%). However, government final consumption expenditure decelerated to 3.1% YoY growth, as opposed to 13.5% and 11.8% in 2Q and 1Q, respectively. Import growth of 14.2% also outpaced export growth of 8.8%.


By industrial origin, industry had the best performance at 8.6%, driven by construction, utilities, and manufacturing subsectors. The services sector posted a respectable 6.9%, though slightly lower than 7.1% and 9.0% in 2Q’16 and 1Q’16, respectively. The agriculture showed signs of recovery as it grew by 2.9%, after 5 straight quarters of decline due to El Niño.