{"id":325736,"date":"2023-11-15T23:07:58","date_gmt":"2023-11-15T15:07:58","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=325736"},"modified":"2023-11-15T23:08:00","modified_gmt":"2023-11-15T15:08:00","slug":"free-special-report-sectors-to-watch-gdp-growth","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/free-special-report-sectors-to-watch-gdp-growth\/","title":{"rendered":"FREE Special Report: Sectors to watch as GDP grows faster than expected"},"content":{"rendered":"\n

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Analysis and Recommendation<\/h2>\n\n\n\n

Philippine 3Q GDP growth beat estimates<\/h3>\n\n\n\n

The Philippine economy grew by 5.9% in the 3rd quarter (3Q) 2023, better than the consensus estimate of 4.7% and picking up from last quarter\u2019s dismal 4.3%. Consumer spending continued to cool as food inflation spikes, with household final consumption expenditure (HFCE) growth slowing to 5.0% from 5.5% last quarter. Gross capital formation also continued to trend lower and contracted by 1.6% YoY as higher interest rates worked its way through the system. <\/p>\n\n\n\n

Accelerated government spending picked up much of the slack, with government final consumption expenditure (GFCE) growing by 6.7% from a contraction of 7.1% in Q2. The country\u2019s net import position also narrowed on the back of 2.6% growth in exports coupled with a 1.3% contraction in imports.<\/p>\n\n\n\n

Per industry breakdown<\/h3>\n\n\n\n

Agriculture picked up the pace and grew by 0.9%, from 0.2% last quarter, but still
continued to expanded at a much slower pace than the broader economy. The same is true for Industry, which grew by 5.5%, from 2.1% last quarter. However, there were bright spots in Industry namely \u201celectricity, steam, water, and waste management\u201d (+7.0% YoY) and \u201cconstruction\u201d (+14.0% YoY). Services remained the pillar of the economy, growing by 6.8% YoY on the back of 14.6% growth in financial and insurance services and 10.1% expansion in professional and business services.<\/p>\n\n\n\n

Sectors to watch<\/h3>\n\n\n\n

Based on the latest GDP figures, we are looking at construction, vehicle sales, power generation, and utilities as some of the key sectors to watch. <\/p>\n\n\n\n

Hotel and restaurants, as well as real estate, are showing early signs of recovery but both sectors are still growing at a slower pace than the broader economy. The buoyant banking and financial services sector is starting to show signs of deceleration, although it is still outpacing GDP growth. <\/p>\n\n\n\n

The information and communication sector, on the other hand, still faces headwinds and showing signs of slowdown while growing slower than the broader economy at the same time.<\/p>\n\n\n\n

GDP Outlook<\/h3>\n\n\n\n

Overall, this recent GDP report was a good recovery from the previous quarter, but we remain cautious on the Philippine economy as we wait for the recent rate hikes to fully work its way into the system. <\/p>\n\n\n\n

With benchmark rates at 6.5%, it is likely that GDP will continue to grow at this lower trajectory of 4.0-6.0% until the BSP starts loosening its monetary policy.<\/p>\n\n\n\n

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