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Advocates Philippines
Philippine Economy Grows By 5.6% In Q4 2023, Ranks Second Among Major Emerging Economies
FILE
The National Economic and Development Authority (NEDA) revealed that the Philippine economy recorded a year-on-year growth of 5.6 percent in the fourth quarter of 2023. This places the Philippines as the second-fastest-growing major emerging economy in the region, trailing only behind Vietnam, which achieved a growth rate of 6.7 percent in the same period.
The NEDA report, based on data from the Philippine Statistics Authority (PSA), indicates a slight slowdown compared to the revised growth of 6.0 percent in the third quarter of 2023. On a seasonally adjusted quarter-on-quarter basis, the economy expanded by 2.1 percent, falling short of the 5.7 percent median forecast by private-sector analysts.
For the full year 2023, the Philippine economy expanded by 5.6 percent, slightly below the government's target range of 6.0-7.0 percent, according to NEDA.
The upbeat domestic demand was driven by robust growth in capital formation and increased household spending. However, this was partially offset by a contraction in government expenditures, leading to a moderation of full-year domestic demand to 4.8 percent as economic activities normalized.
Total investments showed a remarkable acceleration, posting a growth of 11.2 percent in Q4 2023, rebounding from a 1.4 percent contraction in Q3 2023. Despite this, gross capital formation remained below pre-pandemic levels.
Household consumption also witnessed an uptick, with a growth rate of 5.3 percent in Q4 2023, contributing to an overall growth of 5.6 percent for the fiscal year 2023.
Contrastingly, government spending contracted by 1.8 percent in Q4 2023, leading to a meager growth of 0.4 percent for the entire fiscal year, down from 4.9 percent in FY 2022.
In terms of sectors, the industry sector saw a moderation in growth to 3.2 percent in Q4 2023 from 5.6 percent in the previous quarter. The agriculture sector, on the other hand, grew by 1.4 percent in Q4 2023, up from 0.9 percent in Q3 2023.
NEDA Secretary Arsenio Balisacan emphasized the need for continued efforts to address supply-side constraints, ease investment restrictions, and safeguard the purchasing power of Filipino households. He also highlighted the importance of implementing measures to enhance the productivity of the agriculture sector and mitigate the impact of external factors such as El Niño and African Swine Flu.
Balisacan urged collaboration between the executive and legislative branches for the swift passage of crucial tax and expenditure reforms to expand the government's fiscal space and promote inclusive growth. Looking forward to 2024, he set an ambitious target of 6.5 to 7.5 percent growth, emphasizing the importance of coordinated efforts to overcome challenges and foster economic resilience.
The NEDA report, based on data from the Philippine Statistics Authority (PSA), indicates a slight slowdown compared to the revised growth of 6.0 percent in the third quarter of 2023. On a seasonally adjusted quarter-on-quarter basis, the economy expanded by 2.1 percent, falling short of the 5.7 percent median forecast by private-sector analysts.
For the full year 2023, the Philippine economy expanded by 5.6 percent, slightly below the government's target range of 6.0-7.0 percent, according to NEDA.
The upbeat domestic demand was driven by robust growth in capital formation and increased household spending. However, this was partially offset by a contraction in government expenditures, leading to a moderation of full-year domestic demand to 4.8 percent as economic activities normalized.
Total investments showed a remarkable acceleration, posting a growth of 11.2 percent in Q4 2023, rebounding from a 1.4 percent contraction in Q3 2023. Despite this, gross capital formation remained below pre-pandemic levels.
Household consumption also witnessed an uptick, with a growth rate of 5.3 percent in Q4 2023, contributing to an overall growth of 5.6 percent for the fiscal year 2023.
Contrastingly, government spending contracted by 1.8 percent in Q4 2023, leading to a meager growth of 0.4 percent for the entire fiscal year, down from 4.9 percent in FY 2022.
In terms of sectors, the industry sector saw a moderation in growth to 3.2 percent in Q4 2023 from 5.6 percent in the previous quarter. The agriculture sector, on the other hand, grew by 1.4 percent in Q4 2023, up from 0.9 percent in Q3 2023.
NEDA Secretary Arsenio Balisacan emphasized the need for continued efforts to address supply-side constraints, ease investment restrictions, and safeguard the purchasing power of Filipino households. He also highlighted the importance of implementing measures to enhance the productivity of the agriculture sector and mitigate the impact of external factors such as El Niño and African Swine Flu.
Balisacan urged collaboration between the executive and legislative branches for the swift passage of crucial tax and expenditure reforms to expand the government's fiscal space and promote inclusive growth. Looking forward to 2024, he set an ambitious target of 6.5 to 7.5 percent growth, emphasizing the importance of coordinated efforts to overcome challenges and foster economic resilience.
Jan 31, 2024
