Connect with us

Business

Strong Q3 GDP rebuilds optimism

Beyond the year-on-year third quarter GDP uptick, seasonally-adjusted data showed even stronger recovery during the quarter.

Published

on

Sentiment among businesses showed renewed optimism following the stronger than expected third quarter economic performance data, First Metro Investment Corp. (FMIC) and the University of Asia and Pacific said in its latest report on Wednesday.

“Business optimism appeared renewed even with the quarantine restrictions in the third quarter 2021 as the country’s gross domestic product (GDP) expanded by 7.1 percent year-on-year,” the report said.

“Beyond the year-on-year third quarter GDP uptick, seasonally-adjusted data showed even stronger recovery during the quarter, especially for the beleaguered consumer and services sectors,” it added.

According to the think tank, relaxed mobility restrictions throughout the country — particularly in Metro Manila and its nearby provinces, will help further improve both business and consumer sentiment.

“We expect a further ramping up of infrastructure spending starting the fourth quarter 2021 as election spending simmers with lineups firming up by the end of the year,” it said.

Recovery late 2022
The think tank projected the economy’s return to its pre-pandemic levels by the end of 2022, in line with a much tamer inflation in the first quarter of 2022.

“Elevated crude oil prices, which have flattened, won’t prevent headline inflation to drop to four percent or lower by November and will likely average below 3 percent in first quarter 2022 due to the outsized increases recorded in November 2020 to January 2021,” it explained.

The state’s top economic officials are set to brief foreign business chambers about the country’s economic recovery on 26 November — which will aid in accelerating the eyed rebound and a better post-pandemic economy.

Advertisement

LIKE US ON FACEBOOK

Advertisement
Advertisement