Peso retreats on weaker-than-expected Q3 GDP

November 11 ------ The Philippine peso retreated against the US dollar on Tuesday, reacting to weaker-than-expected economic data for the third quarter of the year. The local currency lost 12.5 centavos to close at P48.27:$1 versus Monday's finish of P48.145:$1.

Tuesday's depreciation came as the Philippine Statistics Authority (PSA) reported the third-quarter gross domestic product (GDP) at -11.5%, marking the second consecutive month that the economy contracted by double digits. The latest reading compares with -16.5% in the second quarter, and 6.0% in the third quarter of 2019.

"The local currency depreciated amid the weaker-than-expected Philippine third-quarter GDP growth report despite improving from the record-low levels in the previous quarter," Guian Angelo Dumalagan, market economist at the Land Bank of the Philippines, said in an email exchange. Moving forward, the government said its full-year projection of a 5.5% contraction is no longer feasible.

Source: gmanetwork.com