The Philippine economy grew 4.3% from April to June, the slowest in nine quarters, government data showed Thursday.

Describing it as a “moderate expansion,” the Marcos administration’s economic team said the growth was tempered by high commodity prices, the lagged effects of interest rate hikes, the contraction in government spending, and slower global economic growth.

The government, however, noted increases in tourism-related spending and commercial investments. It was the slowest growth since the country posted 12% in the April to June 2021 period following the pandemic-induced recession.

The economy, as measured by the gross domestic product (GDP), rose 6.4% in the January to March period, bringing first semester growth to 5.3%.

To achieve the government’s growth target of 6%–7% for the year, the country’s GDP needs to expand by at least 6.6% in the second half of 2023.

“Notwithstanding the challenges, we believe this is still attainable,” the economic team said.

“While government expenditure contracted by 7.1 percent in the absence of election-related spending in the first half of the year, government spending will accelerate in the coming quarters to allow us to recover our growth momentum,” the statement said.

“To do this, we will accelerate the execution of government programs and projects, including the delivery of public services, under the 2023 national budget.”

Government agencies, including local and regional government entities, were encouraged, if not instructed, to come up with catch-up plans to accelerate the implementation of programs and projects.

“Moreover, fiscal stimulus activities are underway to increase the productive capacities of both the public and private sectors. Meanwhile, to address the adverse impact of the recent typhoons and monsoon rains, we recommend the immediate use of the Quick Response Fund and other disaster-related budgetary instruments of the government,” the economic team said.