In the third quarter of 2016, the Philippines outpaced many of its regional counterparts, as GDP expanded by 7.1% year-on-year. Services still provide the largest boost to growth, while the agricultural sector is slowly recovering. On the expenditure side, consumption also remains robust. Goods are getting slightly more expensive, but inflation remains well within BSP's targeted 2-4% range. The investment environment has become less active and more cautious, amidst concerns over the foreign policy direction of the new administration and recent global economic events. Businesses also share similar concerns, but consumers who generally feel safer and more confident about the Duterte administration's current performance are more optimistic.