Philippine economy seen to beat Q3 expectations

The Philippine economy is expected to surpass third-quarter expectations, driven by a recovery in manufacturing and trade despite stricter quarantine measures.

First Metro Investment Corp. (FMIC) and University of Asia and the Pacific (UA&P) anticipate that recent economic data indicates third-quarter GDP growth will overcome pessimism stemming from the July-August lockdown in Metro Manila.

Manufacturing activity expanded in September, marking the highest growth in six months, and factory output sustained its three-digit pace of acceleration in August.

Both exports and capital goods imports increased significantly in August, by 17.9 percent and 17.6 percent, respectively.

The economy added 2.6 million jobs in August, recovering 75 percent of the jobs lost in July.

National government spending also soared by 34.2 percent in August, largely due to financial assistance for households affected by the two-week enhanced community quarantine (ECQ).