THE Philippine Statistics Authority (PSA) said the economy grew by only 6.0 percent in the third quarter of 2019, not 6.2 percent as previously announced.
The agency announced the revision in the gross domestic product (GDP) growth rate on Wednesday, January 22, a day before it is scheduled to announce the fourth quarter and 2019 growth estimates.
The downward revision of the third quarter growth rate means the economy would have to post a GDP growth of 6.9 percent in the fourth quarter to meet the government’s target of 6.0 percent to 6.5 percent for the year.
The economy slowed down to growth rates of 5.6 percent and 5.5 percent in the first and second quarters, respectively, of 2019.
In a statement Wednesday, the PSA said the major contributors to the revision were: Other Services, revised to 4.2% from 5.1%; Construction, down to 15.4% from 16.3%; and Transport, Storage and Communication, 8.2% from 9.1%.
Net Primary Income (NPI) from the rest of the world and Gross National Income (GNI) recorded upward revisions to 3.9% from 2.9% and 5.7% from 5.6%, respectively.
The PSA said it revises the GDP estimates based on an approved revision policy contained in PSA Board Resolution No. 1, Series of 2017-053, which is consistent with international standard practices on national accounts revisions.
GDP growth rates have been on a downward trend for the past three years, slowing down from 6.8 percent in 2016 to 6.7 percent in 2017 and 6.2 percent in 2018.
The slowdown in the first two quarters of 2019 prompted the Development Budget Coordination Committee (DBCC) to adjust its GDP growth target in December, from 6 to 7 percent to 6 to 6.5 percent. (MVI/SunStar Philippines)