Philippines farm output declines in Q3, could weigh on growth
12:14 am Wednesday, November 06th, 2024
By Neil Jerome Morales and Mikhail Flores
MANILA (Reuters) -Farm output in the Philippines declined by the most in nearly four years in the third quarter, the statistics agency said on Wednesday, a reading which does not bode well for economic growth in the period.
Farm output fell 3.7% in the third quarter from last year, steeper than the previous quarter’s 3.2% slump, and marking the biggest contraction since the fourth quarter of 2020 when it shrank 3.8%. Crop production, which accounted for half of total production, declined by 5.1% during the period.
“Undeniably, the combined effects of El Niño and La Niña weighed down palay (rice) production,” Agriculture Secretary Francisco Tiu Laurel said in a statement.
Wednesday’s farm output data came a day before the Philippines releases data on third quarter gross domestic product growth, which according to a Reuters poll, may have slowed to 5.7% from the upwardly revised 6.4% expansion in the June quarter.
But a bright spot in the economy is the country’s labour market as the unemployment rate further declined to 3.7% in September from 4.5% a year ago, government data showed.
In a sign that domestic consumption remained robust, imports in September rose by an annual 9.9%, the largest increase since April, but exports continued to cloud the growth outlook as they fell 7.6%, the biggest drop since June.
Weaker growth in the third quarter could bolster expectations of a third straight interest rate cut by the central bank, which will meet on December 19 to review policy.
(Reporting by Mikhail Flores and Neil Jerome Morales; Editing by John Mair and Lincoln Feast.)
