Manila: Results of governance reform measures, along with a seasonal uptick in economic activities during the last quarter of the year, are expected to boost the domestic economy in the coming months, an economist has stated. The Philippine economy, as measured by gross domestic product (GDP), grew by 4 percent in the third quarter this year, slower than last year's 5.2 percent and the previous quarter's 5.5 percent.
According to Philippines News Agency, Rizal Commercial Banking Corporation chief economist Michael Ricafort reported that opportunities in the last quarter of the year could help ensure an average of 5 percent full-year expansion. He noted that exports, which grew by 1.4 percent in the third quarter, remain resilient despite higher United States tariff rates since August 7. Ricafort highlighted that there was frontloading prior to the implementation of the new tariff rates, but exports to other markets also increased as a diversification strategy.
Ricafort also mentioned that improved weather conditions, typically seen in the last quarter of the year, are expected to boost economic activities and growth. He emphasized that investor confidence could improve, potentially leading to faster GDP growth if reform measures, particularly those aimed at enhancing ESG (environment, social, and governance) standards to align with global best practices, are implemented.
Federation of Philippine Industries chairperson Beth Lee attributed the slower economic performance to natural calamities and investigations into anomalous government infrastructure projects. She stressed the importance of anti-corruption reforms to enable progress, emphasizing the need for transparent infrastructure spending. Lee also pointed out that this period offers local industries a chance to regain momentum, with the government prioritizing locally sourced materials that meet product standards and are priced correctly to benefit manufacturers and public projects.
In a separate statement, Makati Business Club executive director Apa Ongpin remarked that slower economic growth is an indirect result of the corruption scandal, compounded by moderate government spending on infrastructure projects. Ongpin echoed Department of Economy, Planning, and Development Secretary Arsenio Balisacan's view that addressing corruption requires a whole-of-society approach. He stated that the Makati Business Club concurs with Secretary Balisacan on the importance of the private sector championing good governance, highlighting the role of watchdogs in holding public officials accountable to encourage both domestic and foreign investment.
