The Philippines is Southeast Asia’s fastest-growing economy in the 3rd quarter this year, posting an “unexpected” 7.1% increase in its Gross Domestic Product (GDP).
The GDP refers to the market value of all final goods and services produced within a country during a certain period. (See also: Top 10 Countries in terms of GDP, GDP per capita)
Analysts point to a sharp increase in farm output, higher construction spending, and improved public and private consumption as reasons for the Philippines’ growth.
According to a Bloomberg report, the country’s 3rd quarter GDP “unexpectedly” exceeded all 22 market estimates tracked by Bloomberg, whose median growth estimate was only 5.4%.
The Philippines beat the 6.2% GDP growth of Indonesia, considered the biggest economy in Southeast Asia. The rest of the GDP growth in the region are as follows:
GDP Growth (3rd Quarter 2012)
- Philippines – 7.1%
- Indonesia – 6.2%
- Malaysia – 5.2%
- Vietnam – 4.7%
- Thailand – 3.0%
- Singapore – 0.3%
In Asia, the Philippines ranked 2nd to China’s 7.7% GDP growth in the same quarter.
The growth rates per sector and industry that contributed to the country’s 7.1% GDP growth are as follows.
Philippines 3rd Quarter GDP Growth By Sector
Year-to-date (from January to September 2012), the Philippines has already grown 6.5%.
The government’s target this year is 5-6%, although the National Economic and Development Authority said a full-year growth of 6-7% may be possible.
Considering that the country is heading towards the Christmas season where consumer spending will surely pick up, coupled with rising remittances from Overseas Filipino Workers due to the holidays, a sustained 5-6% GDP growth for the year 2012 may indeed be possible.