The Philippine economy grew less than initially estimated in the third quarter due to slower pace of growth in services, construction and transport, the Philippine Statistics Authority reported Wednesday.
Gross domestic product expanded 6.0 percent on year, slower than the 6.2 percent increase initially estimated for the third quarter. The statistical office said major contributors to the revision were other services, construction, and transport, storage and communication. Growth in other services was lowered to 4.2 percent from 5.1 percent and that in construction to 15.4 percent from 16.3 percent.
Transport, storage and communication advanced 8.2 percent instead of 9.1 percent. ING Economist Nicholas Mapa said the economy will likely miss its full year target of 6.0-6.5 percent as third quarter GDP was revised lower. The statistical office is slated to publish fourth quarter GDP data on January 23.
The economist said the growth is likely to hit as high as 6.6 percent as capital formation and net exports complement the rest of the growth momentum for a strong finish for the year.
ING expects the central bank to cut policy rates by another 25 basis point at the February meeting to give the economy a shot in the arm as the threat for a full blown volcanic eruption remains.