PH economy grows 5.7% in first quarter despite slowdown in spending, heat
The Philippine economy grew 5.7 percent in the first quarter from 5.5 percent in the previous quarter despite a slowdown in government spending and heat due to the El Nino phenomenon, the Philippine Statistics Authority (PSA) said Thursday.
National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said agriculture grew by 0.4 despite El Nino while industry showed a 5.1 percent growth and services rose 6.9 percent.
Balisacan said that despite several shocks including the effects of El Nino and geopolitical tensions, the country retains its position as a “leading force among Asia's emerging economies”.
“Our first quarter GDP growth rate is about the same as Vietnam's, surpassing other major economies such as China at 5.3 percent, Indonesia at 5.1 percent, and Malaysia at 3.9 percent, but slower than India's projected growth rate of 6.2 percent,” Balisacan said.
Baliscan admitted that there was moderated growth in the domestic demand which “reflected the less favorable business sentiment”, attributing it to inflation and the heatwave experienced by the country.
“Construction slowed down, no doubt affected by prolonged periods of extreme heat. Household spending also slowed due to elevated prices of major food items and the heat wave. Meanwhile, government spending also slowed down, primarily due to the sliding of a large amount of expenditure to April this year, whereas the government made such spending in March last year,” he said.
Balisacan said food security is still the top goal.
“Given extreme weather conditions and climate change, we will invest more in research and innovation to enable our agriculture and food systems to cope with this challenge. We have seen how pre-emptive measures have significantly mitigated the impact of El Nino on the agriculture sector. But a lot more needs to be done, in addition to adjustments in planting calendars,” Balisacan said.
Balisacan also assured the public that they will continue to implement a whole-of-government to address the impact of El Nino while preparing for La Nina.
“We are collaborating with distribution utilities to manage the increasing electricity demand and working with private water concessionaires to address leaks and wastage, ensuring water security,” he said.
Balisacan said they are also focusing on increasing investments and job opportunities.
Jaspearl Tan/DMS
