PH economy grows 7.1% in Q3, exceeding expectations

The Philippine economy grew by 7.1 percent in the third quarter of 2021, exceeding the expected 4.7% and placing the country among the highest growths in Southeast and East Asia.

This expansion, driven by the industry and services sectors, is a significant turnaround from the 11.6% contraction seen in the same period of 2020.

However, the growth was slower than the revised 12% in the second quarter, largely due to the imposition of stricter enhanced community quarantine (ECQ) in August to curb the Delta variant.

Household spending, a major component of GDP, rose by 7.1% in the third quarter, indicating growing consumer confidence.

This performance puts the Philippines on track to meet the upper end of the government's full-year growth target and potentially return to pre-pandemic levels by the first quarter of 2022.

Socioeconomic Planning Secretary Karl Kendrick T. Chua noted that the economy sustained its expansion despite stringent quarantines.