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Philippines unlikely to meet full-year growth target after economy slows in 3Q

joerizjoeriz PEx Influencer ⭐⭐⭐
Maybe the target is an ambitious one. Next time forget about high expectations. Being able to maintain growth as in previous quarter would have been satisfactory enough.


Philippines unlikely to meet full-year growth target after economy slows in 3Q
Associated Press
By Teresa Cerojano, Associated Press 17 hours ago

MANILA, Philippines (AP) -- The Philippines is unlikely to meet its 2014 growth target after the economy's expansion slowed to 5.3 percent in the third quarter.

Growth was dragged down by reduced government spending, a decline in agriculture and slower expansion in services and industry. The economy grew 6.4 percent in the previous quarter.

Economic Planning Secretary Arsenio Balisacan said Thursday that growth for the first nine months was 5.8 percent.

He said hitting even the low end of the government's 6.5-7.5 percent full-year target "would pose a big challenge."

The economy would have to expand 8.2 percent in the fourth quarter to meet it, and economic managers "will brainstorm intensively on how we can come as close to this figure as possible," he said.

Agriculture and fisheries declined 2.7 percent due to damage from calamites, including last year's Typhoon Haiyan.

Service industries, which remained the growth driver, decelerated to 5.4 percent growth from 7.7 percent a year earlier. Industrial growth slowed to 7.6 percent from 7.7 percent last year and 7.9 percent the previous quarter.

Government spending and public construction shrank 6.2 percent due to delays in projects that stemmed from new documentary requirements.

The Philippine economy grew 7 percent in the third quarter of last year

"Do we see a brighter prospect? The short answer is yes," Balisacan said.

It is expected that private business will remain robust, government will have adjusted to new budget protocols, and the reconstruction assistance for typhoon affected areas will gain further traction, he said.

Finance Secretary Cesar Purisima said the 5.3 percent growth in the third quarter highlights problems the Philippines needs to address, but also puts it on a record of 11 straight quarters of above 5 percent growth and among the fastest growing economies in Asia.

"Government spending can improve, and we have ample fiscal space to increase investments in our infrastructure and our people, through education, health, and social services," he said.

http://finance.yahoo.com/news/philippines-unlikely-meet-full-growth-034227489.html

Comments

  • blue_tracerblue_tracer PEx Influencer ⭐⭐⭐
    Sereno downplays link between DAP ruling, economic slowdown

    By MARK MERUE?AS, GMA NewsNovember 28, 2014 2:57pm

    Malaca?ang's pronouncement that the Supreme Court's unfavorable ruling on the Disbursement Acceleration Program (DAP) has somewhat contributed to the economic slowdown in the third quarter is only a ?theory,? Chief Justice Maria Lourdes Sereno said Friday.

    ?I see it as a theory and it will remain as that,? Sereno said on the sidelines of the launching of the Justice Zone Project by the Justice Sector Coordinating Council at the Quezon City Hall.

    Sereno belonged to the majority that struck down certain acts of the DAP as unconstitutional, a ruling that pitted the high court with the executive.

    Her statement came a day after Communications Secretary Herminio Coloma Jr. partly blamed new ?spending protocols" caused by the SC ruling on DAP for the country's slower economic growth during the third quarter of the year.

    Coloma said government spending had to be adjusted after the high court ruling in July.

    Budget Secretary Florencio Abad echoed this, saying in a statement that ?uncertainties? after the DAP ruling ?played a crucial role? in the third quarter economic slowdown.

    In a forum in October, Sereno said it was well within the SC's constitutional mandate to decide on the legality not only of Malaca?ang's controversial discretionary funds, but also of Congress' Priority Development Assistance Fund.

    The court in separate decisions in November 2013 and July 2014 has declared both the PDAF and acts under DAP as illegal.

    The DAP became an issue after Senator Jinggoy Estrada bared that he and other senators who voted to convict former Chief Justice renato Corona in May 2012 received P50 million each in additional funds, later found to be part of DAP funds, months after the impeachment trial. ?KBK, GMA News

    http://www.gmanetwork.com/news/story/390196/economy/business/sereno-downplays-link-between-dap-ruling-economic-slowdown

    sisihin ba ang PDAP ngpalasyo. tama ba yun? klaro naman na may underspending. may pondo. pero walang plano. :rotflmao:

    nasaan na ang mga yellowtards?
  • BeerhandBopBeerhandBop PEx Influencer ⭐⭐⭐
    first is the trak ban and the traffic congestion is has created.



    and everytime you read the words, 'reduced spending' from the yellow administration, it just means they're trying to get 'savings'

    savings which miriam has pointed out a few days ago that are suspiciously listed on 2015 budget. LoL.
  • Phil E. BusterPhil E. Buster PEx Influencer ⭐⭐⭐
    Sereno downplays link between DAP ruling, economic slowdown

    By MARK MERUE?AS, GMA NewsNovember 28, 2014 2:57pm

    ......

    ?I see it as a theory and it will remain as that,? Sereno said ......


    DAP's "Big Bucks Theory", perhaps!
  • blue_tracerblue_tracer PEx Influencer ⭐⭐⭐
    Blame game backfires: Palace blasted for bungling priorities

    By Maricel Cruz | Nov. 30, 2014 at 12:01am

    Supreme Court Chief Justice Ma. Lourdes Sereno has found an ally in the House of Representatives with two opposition lawmakers supporting her position against Malacanang on the issue of the country’s slowing economic growth.

    Even House Speaker Feliciano Belmonte, Jr. agreed that there were other factors that explain for the economic slowdown, and not just the SC ruling on the DAP.

    “Perhaps, (the) effects of world economy and reduced government spending,” Belmonte said.

    Bayan Muna party-list Rep. Carlos Zarate said “it is not only unfair but even criminally anomalous” for the Aquino administration to blame the Supreme Court for its unfavorable decision on the Disbursement Acceleration Program.

    “The real causes of the economy’s slowdown are its lopsided economic policies and its highly anomalous and unconstitutional acts of sabotaging the congress’ power of the purse,” Zarate, a member of the left-leaning Makabayan Bloc, said.

    Zarate pointed out Aquino’s “fiscal dictatorship” that is sabotaging the country’s economy.

    “Now it can be told that it is unadulterated lie when the Aquino administration earlier claimed that DAP was successful in stimulating our laggard economy and it was stopped as it already served its purpose. Pure lies,” Zarate said.

    Abakada party-list Rep. Jonathan de la Cruz, member of the House Independent Bloc, echoed Sereno’s message to the Palace not to blame the High Court decision declaring the acts and practices under the DAP unconstitutional for the economy’s lackluster performance in the third quarter.

    Sereno was one of the 13 SC justices who voted to strike down as unconstitutional salient provisions in the controversial DAP.

    The SC justices ruled that the acts and practices under the DAP violated the constitutional doctrine of separation of powers as well as the provision prohibiting the inter-branch transfer of appropriations.

    “I agree with the Chief Justice. It is unfair and utterly ridiculous to blame the SC ruling on DAP for the slow down,” de la Cruz, member of the Bloc of Leyte Rep. Ferdinand Martin Romualdez, said.

    “It is the administration’s skewed priorities and bungling which is causing the problem. It must be emphasized that even without the DAP ruling, their utilization of budgeted funds has been slow and uneven up to now the average,” de la Cruz said.

    Sereno ealier defended the high court ruling on the DAP, which the Executive branch on Thursday claimed resulted in slower government spending that resulted in a lower growth of the gross domestic product.

    But a Palace ally, Isabela Rep. Giorgidi Aggabao said the weak economy during the third quarter of this year was due to the SC decision on the DAP.

    Public works spending declined by a whopping six percent last quarter. That is obviously because of the SC decision in the DAP cases to stop govt spending,” Aggabao, a House deputy speaker, said.

    “The SC was forewarned by the government that its decision would impact on the national economy. Now, it should carry part of the blame for a slowing economy,” Aggabao added.

    The Philippine Statistics Authority said economic growth in the third quarter unexpectedly slowed to 5.3 percent compared to 6.4 percent in the previous quarter, the weakest pace since 2011 as government spending fell, diluting the gains from private consumption and industrial production.

    The figure was lower than the 7-percent expansion in the same quarter last year and below all the estimates of 24 economists in a Bloomberg survey.

    Sereno rejected the Palace’s insinuation that the slower growth in the third quarter could be partly attributed to the new “spending protocols” arising from the declaration that the DAP is unconstitutional.

    Data from the Philippine Statistics Authority showed a 2.6-percent decline in public spending from a year earlier.

    However, Sereno said the Supreme Court’s decision on DAP had nothing to do with the GDP growth rate.

    In its ruling on the DAP, the high court specifically declared as illegal the withdrawal of unobligated allotments from implementing agencies and their use as savings before the end of a fiscal year.

    The Court also declared as unconstitutional the cross-border transfers of savings of the Executive to augment the funds of agencies outside the department, as well as the funding of projects and programs not covered in the General Appropriations Act.

    The tribunal also voided the use of unprogrammed funds despite the absence of a certification by the national treasurer that the revenue collections exceeded the revenue targets.

    Budget Secretary Florencio Abad had earlier said that the high court’s ruling on the DAP may have sent a chilling effect across the bureaucracy’s expenditure practices and thus resulting in cautious government spending.

    Public construction in the third quarter contracted from a double-digit growth of 19.1 percent to -6.2 percent due to the lags in the submission of documentary requirements for spending by government agencies. The agriculture sector also held down the economy when farm output dropped by 2.7 percent.

    Growth in the third quarter was driven by manufacturing, trade, real estate, renting and business activities and construction.

    The slowdown in the sub-sectors such as financial intermediation and contractions in agriculture and public administration “tempered the pace of growth.”

    Despite the slower growth, Balicasan said the Philippines was still among the fastest-growing economies in the region. The Philippines aims to increase its GDP by 8.5 percent when President Aquino’s term ends in 2016.

    http://manilastandardtoday.com/2014/11/30/blame-game-backfires-palace-blasted-for-bungling-priorities/


    sen. serge osmena was right: pnoy is an awful manager. :glee:

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