The Philippine economy is experiencing moderate growth in the first quarter of 2023, despite challenges both domestically and internationally. Gross domestic product (GDP) grew by 5.7% compared to the same period last year, slightly below the forecasted 5.9% growth rate in a Reuters poll.
While this was an improvement from the previous quarter’s 5.5% growth, weaker consumer spending continued to weigh on overall economic performance. Despite this challenge, government officials remain optimistic about the country’s economic outlook, with Economic Planning Secretary Arsenio Balisacan highlighting the rebound in export growth, particularly driven by increased shipments of electronic products.
Inflation continues to be a factor affecting domestic demand, with growth slowing to 4.6% in the first quarter of 2023. However, despite these challenges, there are positive signs of growth and resilience in the economy. The government demonstrated resilience with a 9.5% increase in exports compared to the previous year, marking the fastest growth since the fourth quarter of 2021.
Overall, while there are uncertainties in the global economic landscape, government officials remain focused on maintaining momentum and achieving their growth targets for full-year targets of 6-7%.