In the third quarter, private consumption increased by 7.2 percent year-on-year, following a 7.1 percent rise in the previous period, supported by consumption on food & non-alcoholic beverages, communication and housing & utilities. Also, goverment spending rose 4.3 percent, faster than a 3.3 percent increase in the prior three months. In addition, gross fixed capital formation expanded 6.7 percent, much faster than a 4.1 percent growth in the preceding quarter, driven by machinery & equipment and recovery in other asset. Exports grew by 11.8 percent, higher than a 9.6 percent rise in the June quarter. Imports advanced 13.4 percent, compared to a 10.7 percent rise in the previous three months.
On the production side, the services sector went up by 6.6 percent, stronger than a 6.3 percent rise in Q2. At the same time, the manufacturing sector rose 7.0 percent, after growing 6.0 percent in the June quarter. Also, the mining & quarrying sector increased at a faster 3.1 percent (from 0.2 percent). Meantime, the construction sector grew by 6.1 percent (after a 8.3 percent rise in Q2). The agriculture sector grew by 4.1 percent, compared to a 5.9 percent increase in the June quarter.
Moving forward, the economy is expected to reach the upper range of the official projection of 5.2 – 5.7 percent in 2017, supported by domestic demand. Meantime, exports are expected to continue benefiting from the favourable global demand conditions. Headline inflation is expected to average at the upper end of the forecast range of 3 – 4 percent for 2017 as a whole.
On a quarter-on-quarter seasonally-adjusted basis, the economy grew by 1.8 percent, faster than a 1.3 percent growth in the previous period.