The Philippine Chamber of Commerce and Industry (PCCI), the voice of business, has warned of further economic slowdown in the face of disasters as the country’s GDP grew only 4 percent in the third, the lowest in four years.
The Philippine gross domestic product (GDP) grew by 4.0 percent in the third quarter from a 5.5 percent clip in the 2nd quarter, bringing the year-to-date average to 5.0 percent, below the government’s target range of 5.5 to 6.5 percent, due to sharp contraction in spending for public construction projects and lower disbursement of government subsidies, data from the Philippine Statistics Authority (PSA) showed.
“There could be further slowdown in the face of the disasters we are facing,” said PCCI President Enunina Mangio.
She added that the decline in GDP to 4 percent from — percent in the second quarter is a wake up call to the government and reflects the challenges confronting key sectors in the domestic economy.
Mangio pointed out that micro, small and medium enterprises continue to struggle with high costs and limited access to financing, manufacturers face rising production expenses and logistical constraints, and agriculture sector needing stronger support to improve productivity and food security
“We urge government to move faster on infrastructure, digitalization, and transparent and accountable budget disbursement, while ensuring consistent policies that build business confidence,” she said.
To boost economic activities, she urged government to further ease access to credit for MSMEs and reduce regulatory bottlenecks to support their expansion. Strengthening agriculture, revitalizing manufacturing, and empowering MSMEs are critical to restoring stronger, more inclusive, and sustainable economic growth, she added.
