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Philippine economic growth declines for sixth straight quarter

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Screengrab from Philippine Statistics Authority Facebook page
Screengrab from Philippine Statistics Authority Facebook page

Economic growth fell for the sixth straight quarter on Monday as gross domestic product for the third quarter came in at 2.1 percent from a revised 2.4 percent in the previous period.

This is the weakest economic growth since 2009.

After nine months, growth has averaged 2.5 percent, putting in question whether the growth target of 3.5-4.5 percent could be met.

Secretary Arsenio Balisacan of the Department of Economy, Planning and Development, said in a statement that ''high food and energy prices constrained household spending'' which grew 2.4 percent from last quarter's 2.9 percent.

Agriculture output went down by 4.8 percent due to tropical cyclones and enhanced southwest monsoon, he said. Palay and corn prices went down by more than 17 percent ''reducing rural incomes and adding to food supply pressures,'' added Balisacan.

Public conduction went down for the sixth straight quarter ''although its contraction eased 15.1 percent from 33. percent.''

Balisacan said recovery ''toward next year's 5-6 percent target remains possible but requires stronger investment, easing price pressures and renewed confidence.''

Balisacan added that ''energy shocks, El Nino and implementation delays remain risks.'' PHS

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