After a strong rebound in 2010,Philippine economic growth slowed by more than half to 3.6percent in the first three quarters of 2011. Slower thirdquarter (Q3) growth of 3.2 percent was the result ofsignificant contractions in exports and public investment.The contraction in exports largely reflected weaker demandin advanced economies while public investments continued toshrink in part because of measures to improve accountabilityof public spending. On the production side, industrial andagricultural activities were sluggish, leaving the servicessector to buoy growth. To improve growth outcome in theremainder of the year, the government announced a PHP 72billion (about 0.7 percent of GDP) disbursement accelerationplan to ensure that budgeted items are spent by year end.After a strong rebound in 2010, Philippine economic growthslowed by more than half to 3.6 percent in the first threequarters of 2011, bringing year to date growth below thegovernment's revised target of 4.5 to 5.5 percent for2011. Q3 growth of 3.2 percent was driven by privateconsumption and inventory build-up, which grew by 7.1 and147.7 percent respectively. The country's slowerexpansion places it behind its neighbors with Indonesia,Vietnam, and Singapore growing above 6 percent, Malaysia at5.8 percent, and Thailand, which was devastated by massiveflooding in recent months, at 3.5 percent.
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