Bye-bye target? Pernia says 7% growth needed in Q4 to hit 2018 goal
He is not too pleased about the latest print.
Economic Planning Secretary Ernesto Pernia admitted that he is “not exactly exuberant” to report a 6.1 percent growth for the economy during the third quarter, which slowed from 6.2 percent previously.
Apart from again missing the government’s already reduced 6.5-6.9 percent target and fell short of market expectations, Pernia said a bigger problem appears to be sprouting.
“We are concerned, because the reason for the slowdown, among others, is the slowdown in household consumption, particularly the marked slowdown in the household spending on food and other basic products,” the Cabinet official said during the press briefing on Thursday, Nov. 8.
Consumption has long been the biggest driver of economic activity in the Philippines.
To hit the low end of the growth target, the economy must grow by seven percent in October-December compared to a year ago.
Is it a long shot?