Reportedly, the Philippine financial system grew faster than anticipated during the third quarter boosted by stronger administration spending, making it all but definitely; there would not be a requirement for more policy easing in 2019. The GDP (gross domestic product) in the July–September quarter surged by 6.2% from the last year, the statistics bureau stated, surpassing the 6% median forecast in a Reuters survey. That correlated with a growth of 5.5% in the previous quarter. On a periodically-adjusted basis, wealth increased by 1.6% during the third quarter. A projected pick-up in the government investments, declining inflation, and recoil in farm productivity combined to elevate the third-quarter growth.
The Philippines stays one of the fastest-developing economies in the Asia Pacific, but intensifying uncertainties—such as ongoing trade tensions amid the U.S.-Sino—had put this year’s 6–7% growth goal in jeopardy. Ernesto Pernia—Economic Planning Secretary—asserted the financial system will need to inflate by a minimum of 6.7% during the final quarter to attain at least the bottom end of the development goal. However, the growth rebound might not be sustained. In a research note, Alex Holmes—Economist (Asia) at Capital Economics—said, “We don’t think third quarter’s strong numbers mark the beginning of a sustained recoil. On the brighter side, the intake must persist to grow at a straight rate, helped partly by a sharp dropdown in inflation, which will have strengthened consumers’ purchasing power.”
On a related note, the Philippine central banker views “pressure” from the U.S. Fed (Federal Reserve) rate cuts. The U.S. Fed’s interest rate curbs have put pressure on budding economies to slacken off monetary policy or else deal with an invasion of assets that drives up their currencies, Benjamin Diokno, Governor of the Bangko Sentral ng Pilipinas, lately said to Nikkei.
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