Q3 GDP growth even slower than earlier reported by PSA

The Philippine Statistics Authority (PSA) has trimmed the country’s economic growth report in the third quarter, following downward revisions in the performance of several sectors.

Latest data showed that the country’s gross domestic product (GDP) had expanded by 3.9 percent in the third quarter.

The revised figure still marks the slowest growth rate in four years, coming in even lower than the already slow 4 percent that had rattled economic confidence and dampened business sentiment.

The adjustments were made to reflect more complete data that had been generated after the initial release, in line with the PSA’s revision policy.

State statisticians said the biggest downward revision came from electricity, steam, water and waste management sector, which was corrected to a 0.6-percent contraction from an earlier reported 0.6-percent growth.

Growth in real estate and ownership of dwellings was also revised down to 4 percent from 4.7 percent.

Meanwhile, accommodation and food service activities growth was downgraded to 4.8 percent from the preliminary 5.7-percent estimate.

The PSA reported the revisions a day before the release of the fourth-quarter GDP today. The report is much-awaited as a key signal of the Philippine economy’s momentum entering 2026.

An Inquirer poll of 14 economists last week yielded a median growth estimate of 4.2 percent for the fourth quarter, a pace that would lift the full-year average to 4.8 percent.

That matches the Marcos administration’s full-year forecast of 4.7 percent to 4.8 percent, which officials already conceded as likely, given that the country is still reeling from slow government spending amid the fallout of the flood control corruption scandal.

The initial 4-percent reading was way short of the government’s target range of 5.5 to 6.5 percent, extending the country’s streak of missed annual targets since 2023.

In anticipation of the subdued 2025 growth, the Development Budget Coordination Committee has scaled down its growth target for 2026 to 5 to 6 percent, from an earlier goal of 6 to 7 percent.

“The reason for the scaling down of growth arose from the reality that we saw and have been seeing both globally and domestically,” Economic Planning Secretary Arsenio Balisacan said earlier.