According to government statistics, Philippines economy grew by 7.2% in 2013 (adjusted to inflation). 4th quarter growth was recorded at 6.5% lower than the forecast of Philippine Economist – 7.2%.
The 7.2% (Q4 2013) forecast of Philippine Economist was already adjusted to the effect of Typhoon Yolanda. What significantly affected the forecast was the decline in construction expenditure. Based on the data released by Philippine Statistics Authority (PSA), construction expenditure posted a negative growth of .5% in Q4 2013 compared to positive growth of 30.4% in 2012. The decline in construction expenditure is seen to drag the down the growth of the overall economy in the said quarter.
On a positive note, full year 2013 growth ended at 7.2% - still on the high levels. Philippine Economist forecast for FY 2013 is 7.4%.
Construction market is volatile and sensitive to global economic condition.
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