The Philippine economy grew at its slowest in more than a year as exports fell and storms hit agricultural production, giving the central bank fresh impetus to cut rates further. of interest.

Gross domestic product between July and September rose 5.2 percent from a year earlier, the statistics agency said Thursday (Nov. 7), down from the median estimate of 5.7 percent. economists in a Bloomberg survey. This compares to growth of 6.4 percent in the second quarter and is the weakest figure since the second quarter of last year.

Growth for the first nine months of the year was 5.8 percent, short of President Ferdinand Marcos Jr’s government’s goal of expanding the economy by at least 6 percent in 2024. quarter over quarter, the economy grew slightly faster than expected. Expansion of 1.7 percent.

Economic Planning Secretary Arsenio Balisacan said the economy must grow by at least 6.5 percent in the current quarter to meet the government’s target. “We remain optimistic that this growth target will be achieved,” he said.

Balisacan said he expects the central bank to continue cutting interest rates to boost investment, particularly in construction.

Foreign exchange and stock markets have weakened. Manila’s benchmark stock index fell 2.7 percent as of 11:03 a.m., poised for its lowest close in nearly two months. The peso was down 0.1 percent at 58.745 against the US dollar.

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The Bangko Sentral ng Pilipinas has made two quarter-point reductions since August to bring its key interest rate down to 6 percent. Governor Eli Remolona said GDP data would guide easing policy, with a further 25 basis point cut possible next month, which could help support the economy.

Consumption, which accounts for more than 70 percent of national output, increased by 5.1 percent while growth in public spending slowed to 5 percent from 11.9 percent in the second quarter. Exports fell 1 percent in the third quarter, after increasing 4.2 percent in the previous three months.

“Even though the worst is probably over for private consumption in the Philippines, we doubt that this pace of consumption growth is sustainable,” said Shivaan Tandon of Capital Economics. Tandon said downside risks to domestic demand had increased and with the US dollar strengthening, the central bank may opt “for fewer rate cuts.”

The agricultural sector, which accounts for nearly a tenth of Philippine GDP, declined 2.8 percent as typhoons including Yagi and Gaemi worsened wet weather in the third quarter. Growth in the industrial and services sectors slowed to 5 percent and 6.3 percent, respectively. BLOOMBERG