Philippines posts 5.9% GDP growth in Q3 2023

THE Philippines registered an economic growth of 5.9% in the third quarter of this year, according to government data released on Thursday.

The July to September expansion of the gross domestic product (GDP) was better than the April to June period, when it hit 4.3%, the slowest since the country emerged from the recession caused by the COVID-19 pandemic in the middle of 2021.

For the first three quarters, the GDP rose 5.5% on average.

This means the economy will need to grow by 7.2% year-on-year for the fourth quarter to achieve at least the low end of the government’s target of 6-7% for the whole of 2023.

According to the Philippine Statistics Authority, the main contributors to the third quarter GDP growth were wholesale and retail trade; repair of motor vehicles and motorcycles, 5.0%; financial and insurance activities, 9.5%; and construction, 14.0%.  

Major economic sectors—agriculture, forestry, and fishing, industry, and services—all posted positive growths of 0.9%, 5.5%, and 6.8%, respectively.

Government spending chipped in 2.1 percentage points to the third quarter GDP growth. 

”We commend the national government agencies and local government units for responding to the economic team’s call to implement catch-up expenditure plans. These plans aim to expedite the implementation of government programs and projects and improve the delivery of public services under the 2023 public expenditure program,” National Economic and Development Authority Secretary Arsenio Balisacan said.

”These actions addressed the contraction in government spending in the previous quarter. We hope to maintain this momentum for the remainder of the year and the years to come.”

Household consumption growth slowed down year-on-year to 5.0% in the third quarter of 2023 from 5.5% in the second quarter as food inflation jumped to 8.2% in the third quarter from 7.4% in the second quarter. 

”We emphasize that non-monetary measures to protect the purchasing power of Filipinos remain crucial as we address the issue of high inflation. Hence, the proactive role of the Inter-Agency Committee on Inflation and Market Outlook is critical in effectively managing the supply and demand situation of various commodities in the country,” Balisacan said.

Balisacan said the government will also provide support for agricultural production in the provinces that will still be able to grow food during the worst of El Niño.

”Additionally, the government will provide emergency employment opportunities for farmers in provinces who cannot produce during this period. These efforts will be coordinated through the inter-agency El Niño Task Force,” he said.