Philippine gov't misses growth target as economy grew slower at 5.6% in 2023
The Philippine government failed to attain its economic growth target of 6 to 7 percent for 2023 as the gross domestic product (GDP) for the previous year slowed down to 5.6 percent.
"While this growth is below our target of 6 to 7 percent for this year, this keeps us in the position of being one of the best-performing economies in Asia," said National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said on Wednesday.
Philippine Statistics Authority (PSA) Undersecretary Claire Dennis Mapa the 5.6 percent fourth quarter growth is far from the 7.1 percent growth recorded in the same quarter of 2022.
''For the full year of 2023, the GDP growth recorded at 5.6 percent from the 7.6 percent in 2022," he said.
Balisacan said Philippines real GDP growth for 2023 surpassed China's 5.2 percent, and Malaysia's 3.4 percent growth.
"More importantly, our full-year GDP for 2023 is now 8.6 percent higher than pre-pandemic levels," he noted.
As he welcomed robust growth in restaurants and hotels spending at 16.2 percent, transport at 12.2 percent, and recreation at 7.3 percent, Balisacan also expressed concern over the low growth in real spending on food due to inflation.
"We are concerned about the low growth in real spending on food due to high food prices, though it has moderated in recent months. The government will be relentless in managing inflation, especially for basic commodities such as food," he said.
"Our efforts include improving the efficiency and building the resiliency of the agriculture value chain, utilizing strategic trade policy when domestic production is inadequate, and establishing mechanisms to empower consumers to exercise their market power to combat inflation," he added.
Despite the high inflation in food products, Balisacan said "the agriculture sector grew by 1.4 percent in Q4 2023, up from 0.9 percent in Q3 2023, which brings the full-year growth to 1.2 percent."
"Demand for agricultural output will remain strong ? whether for household final consumption, as inputs to industry, or for exports," he said. Robina Asido/DMS
