The Philippine economy is expected to have grown by 3.8 to 4.8 percent in the third quarter supported by strong performance of the services sector, according to the country's key socio-economic planning agency.

"I expect third quarter GDP growth to be greater than 4 percent. More specifically, our simulation results show the range," Ruperto Macuja, assistant director general of the National Economic and Development Authority (NEDA), said Wednesday.

Macuja said the good performance of the services sector, especially business process outsourcing, would have boosted economic growth in the third quarter. This will offset the sluggish growth of the farm sector.

During the period, the country's farm sector took a beating from a number of typhoons which destroyed crops and other farm products. In terms of volume, farm production grew by almost 2 percent in the third quarter of the year, slower than the average of 5 percent in the previous two quarters.

In the second quarter, the Philippines posted an economic growth rate of 3.4 percent. The National Statistical Coordination Board (NSCB) said this is due to the "base effect." In April to June last year, GDP growth reached a whopping 8.9 percent as the presidential elections spurred private consumption.

The NSCB will issue the actual third quarter GDP growth report next week.

Xinhua