Metro Manila (CNN Philippines, May 11) — The Philippine economy expanded by 6.4% in the first three months of 2023 — its slowest yet since it exited a pandemic-induced recession in 2021, data from the Philippine Statistics Authority (PSA) showed Thursday.
The performance was weaker than the 7.1% growth posted in the last quarter of 2022.
The latest figure is also above the 6.04% average forecast in a CNN Philippines poll of 10 economists, with analysts citing persistent high inflation and elevated interest hikes weighing on the country’s growth.
“Ito ang pinakamababang paglago matapos ang pitong quarter nang magsimula ang pagbangon ng bansa mula sa pandemiya noong ikalawang quarter ng 2021,” National Statistician Dennis Mapa said during a briefing.[Translation: This marks the slowest growth after seven quarters when the country started its recovery from the pandemic since the second quarter of 2021.]According to Mapa, among the main contributors to last quarter’s growth were wholesale and retail trade, repair of motor vehicles and motorcycles, and financial and insurance activities.Agriculture, forestry, and fishing, as well as services sectors, also recorded a positive performance in the period.“One cannot discount that the slowdown that we’ve seen in the first quarter is the effect of high inflation,” National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said at the press conference.He also said that surging inflation in the earlier months reduced consumers’ purchasing power, but households “still managed to increase their consumption level.”The PSA reported that household final consumption expenditure grew by 6.3% in the January to March period. Balisacan also said that while the pent-up demand witnessed particularly in late 2022 has started “getting weaker,” the economic growth can still bank on improvements in the labor market and expectations of “better” conditions in the coming months. “The high prices last year resulted in tightening of monetary policy, interest rates increase. The effects of those would be felt in latter months and we are starting to feel that… But then, the fact that this inflation has begun to come down… can rebuild confidence of consumers and the business community,” he said.
