Data from the National Statistical Coordination Board (NSCB) showed that the government final consumption expenditure (GFCE) grew by 4.6 percent to 16.9 percent compared to the 12.3 percent last year, while consumer spending slowed down by 0.5 percent to 6.2 percent compared to the 6.7 percent in the third quarter of 2012.
“GFCE grew by 4.6 percent from 12.3 percent in the previous year on account of increased government expenditure programs implemented by government agencies,” the NSCB said.
The state-run statistical body said that consumer spending was down because of the drop of consumer subsectors such as health; furnishings, household equipment and routine household maintenance; restaurants and hotels; communications; recreation and culture; and transport services all of which dropped 1 percent to 6 percent by third quarter.
On the other hand, investments in construction plummeted with only a 4.2-percent growth in third quarter compared to the 19.2-percent growth the same time last year. This was mainly because of the sharp decline of private constructions to 0.6 percent from 21.4 percent in 2012.
Though public construction due to intensified government infrastructure spending was raised to 23.9 percent from last year’s 8.5 percent, the investments in constructions was still much affected by the descent in the private sector.
On Thursday, the NSCB announced the 7-percent gross domestic product (GDP) growth of the country, which was slightly down compared to first and second quarters’ 7.6-percent GDP growth. The country’s GDP growth, which is the determinant on how fast an economy grows through measured economic performance and activities, was the second-fastest growing in the world, only second to China that recorded 7.8-percent growth in the third quarter.
Socioeconomic Planning Arsenio Balisacan said that the country only needs a 2-percent to 5.7-percent growth in the fourth quarter to be able to reach government’s target of 6.5-percent to 7-percent growth for the whole of 2013.