Despite lower economic growth of 6.4 percent in the first quarter, National Economic Development Authority (NEDA) Secretary Arsenio Balisacan said it is still within the government’s growth target for 2023.

"This growth performance is higher than the median estimates of analysts reported by the media and well within the government’s target of 6 to 7 percent for 2023," Balisacan said during the press conference Thursday.

The gross domestic product or GDP in the first quarter is the lowest growth after seven quarters when the country started to recover from the COVID-19 pandemic, the Philippine Statistics Authority (PSA) said.

"While this quarter’s growth figure is lower than the 8 percent year-on-year growth rate recorded in the first quarter of 2022" said Balisican, who added the "need to exercise caution in interpreting this as a slowdown since the previous year’s growth came from a low base."

"The economy is normalizing its previous trend. The better-than-expected first-quarter performance this year implies that we are returning to our high-growth trajectory despite the various challenges and headwinds we have faced. However, we have much more work to realize our social and economic transformation agenda toward a prosperous, inclusive, and resilient Philippines," he said.

In a press conference, PSA Undersecretary Dennis Mapa enumerated three factors that contributed to the slowdown of economic growth.

"On the production side there were three items that contributed to the slow down; one is mining and quarrying, its growth is negative 2.2, public administration and defense, the growth rate is 1.5 and human health and social work activities, the growth rate is higher at 7.5. But the previous growth rates are actually higher," he said.

Balisacan also mentioned that the high inflation which "remains a challenge" to the government also affects the slow economic growth in the first quarter.

"One cannot discount that the slowdown that you have seen in the first quarter is the effect of partly an effect of high inflation elevated prices. There is quite clear evidence in the literature about the relationship between high prices within high prices and demand," he said.

"Despite this rather auspicious beginning for 2023, we, in the Economic Team and the whole government, have to remain vigilant. While we remain focused on implementing our social and economic transformation agenda, we also stand ready to respond to the shocks and risks to our growth outlook ? both domestic and external, foreseen and unforeseen," he added. Robina Asido/DMS