Philippine economic growth declines to 4.6 percent in second quarter
The Philippines reported slower growth in the second quarter, but the country's economic managers say it will boost government spending to recover growth momentum.
Second quarter growth as measured by gross domestic product reached 4.3 percent, the Philippine Statistics Authority (PSA) said Thursday.
During the first quarter, GDP grew 6.4 percent while in the fourth quarter of 2022, GDP was at 7.2 percent from 7.6 percent in the third quarter.
In a joint statement, the country’s economic managers said “increases in tourism-related spending and commercial investments” were “tempered” by “high commodity prices, the lagged effects of interest rate hikes, the contraction in government spending and slower global economic growth.”
It said government spending “will accelerate in the coming quarters” to recover momentum after it declined 7.1 percent in the second quarter.
To hit the target of 6-7 percent this year, GDP must grow by at least 6.6 percent in the second half of 2023.
''Notwithstanding the challenges, we believe this is still attainable,'' the economic managers said.
The economic managers point out that the government will speed up ''execution of government programs and projects, including the delivery of public services under the 2023 national budget.''
They point out that ''employment and jobs are at historic high levels, tourism growth areas are back, investment registration activities have significantly increased, and our students are back in school.''
The economic managers said the declining inflation rate “bodes well for the easing of interest rates and should pave the way for the expansion of activities of businesses, households and the rest of the private sector.” DMS
