Philippine economy grows less expected than on weaker consumer spending
THE Philippine economy accelerated less than expected in the first quarter, government data showed on Thursday (May 9), as weaker consumer spending offset a rebound in export growth.
Gross domestic product grew 5.7 per cent in the first three months from the same period last year, the statistics agency said, up from the previous quarter’s 5.5 per cent but below the 5.9 per cent forecast in a Reuters poll.
The South-east Asian nation’s government remains optimistic about growth, Economic Planning Secretary Arsenio Balisacan said, including the strong rebound in exports fuelled by a recovery in shipments of electronic products.
“Despite our challenges on both domestic and international fronts, our economy continues to demonstrate remarkable resilience and growth,” Balisacan told a press conference. “We are in good shape.”
He expressed confidence the economy can hit the government’s 6 to 7 per cent full-year growth target. The government cut the target range last month from December’s 6.5 to 7.5 per cent projection due to high inflation and an anticipated global slowdown.
Inflation continues to dampen domestic demand, which grew 4.6 per cent in the first quarter, the weakest since a 4.8 per cent contraction in the first quarter of 2021.
On a seasonally adjusted basis, economic growth slowed to 1.3 per cent from 2.1 per cent in the previous three months, although this was above the 1 per cent growth forecast in the Reuters poll.
Exports rose 9.5 per cent from a year earlier, the fastest since the fourth quarter of 2022. REUTERS
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