Business

Philippine economy grows 6% year-on-year

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Media captionPoor infrastructure costs the Philippine economy an estimated $60m a day

The Philippine economy grew 6% year-on-year in the three months to September, slightly below forecasts but still leaving it on track to be one of Asia's fastest growing economies this year.

Arsenio Balisacan, the country's economic planning secretary, said the numbers were an encouraging sign of a steadily growing economy.

The Philippines is Southeast Asia's fifth largest economy.

The economy grew by 1.1% in the quarter from the previous three-month period.

That was also below expectations, and marked a slowdown from the 2% growth recorded in the three months to June.

However, Mr Balisacan said the latest gross domestic product figures made full-year growth of 6% likely, with even better prospects for the final quarter.

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Image caption Trade activity remained strong in the three months to September, with exports up 6.4% from a year earlier and imports up 13.5%.

The country's services sector gave the economy a boost, together with investment demand and government spending - which Mr Balisacan said was in line with efforts to address spending bottlenecks.

Rahul Bajoria, emerging markets economist at Barclays, told the BBC there had been a pick-up in construction, transfers and weather-related income support from the government.

Since President Benigno Aquino came to power five years ago, the government says its infrastructure spending has tripled.

However, rail networks, ports, roads and airport developments have all faced delays, and poor infrastructure costs the economy an estimated $60m (£39.6m) a day.

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