The Philippine’s economy is the fastest growing among neighboring Asian countries according to the Philippine Statistics Authority (PSA) as the third quarter of the year ended.
The growth is a percent higher than that of the same quarter last year which was at 6%. The expected growth of the government was around 6.3% to 7.3%.
The country’s GDP grew a total of 7.1% under the administration of President Rodrigo Roa Duterte. This latest advancements and progress places the country as the fastest-growing among the major Asian emerging economies that issued their quarter-end data.
This unexpected turn of events puts the country ahead of several other Asian powerhouses such as China which has submitted a 6.7% growth, Indonesia with 6.4% and Malaysia with 4.3%. However, India’s quarter end data hasn’t been released, a possible competition as they showed a progress of 7.1% growth last second quarter.
The country is aiming to close the year with a 6% to 7% growth.
Factors that affects the growth
The robust investments growth is a result of $160 billion developing plan for constructions and infrastructures, optimistic consumer spending influenced low inflation and low-interest rates. Some of the developing budgets are to set for airports and railways.
Constructions by private sectors were boosted to 16.2% from last year’s 4%. Public investment in infrastructure is continuing to grow steadily and boldly as public construction boomed over 20% by the end of the third quarter. Household spending which was making the 70% of the country’s GDP gained an elevated 7.3% from last year’s. Government spending also rose to 3.1% and investments vamps to 20%.
Agriculture also ricochets after 5 continuous diminishing quarters; a listed 2.9% growth puts smiles after the elongated drought that ravished the country’s agricultural scene.
Exports also soared to a 7.8%, but one of the country’s best assets, salary remittances decelerates.
The Philippines and other foreign ties
Even after the election, President Duterte showed his distaste with the relationship between the Philippines and the USA. A lot of verbal disagreements have been set after President Duterte took over; his strong will and campaign against drugs also drove away other foreign investors as blood continues to be shed on the streets every day.
However, President Duterte congratulated the newly elected Donald Trump and aims for the betterment of the stipulating relationship both countries have.
Even after all the growth in GDP, the country’s battle against the dollar is sinking to an eight-year low at $1 to 49.32 pesos.
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