BUSINESS
Advocates Philippines
Philippine GDP Expands In Q1 Of 2023
Photo credit: PSA
In a positive development for the Philippine economy, the country's Gross Domestic Product (GDP) grew by 6.4 percent in the first quarter of 2023, according to the latest data released by the Philippine Statistics Authority. This marks the lowest growth rate after seven quarters of economic recovery since the pandemic began in the second quarter of 2021.
The growth was driven by various sectors, including wholesale and retail trade, repair of motor vehicles and motorcycles, financial and insurance activities, and other services. Major economic sectors such as agriculture, forestry, and fishing, industry, and services also posted positive growths of 2.2 percent, 3.9 percent, and 8.4 percent, respectively.
On the demand side, the Household Final Consumption Expenditure (HFCE) grew by 6.3 percent in the first quarter of 2023, while the government's final consumption expenditure (GFCE) grew by 6.2 percent. Gross capital formation saw a growth of 12.2 percent, while exports of goods and services grew by 0.4 percent. Imports of goods and services also increased by 4.2 percent.
The Gross National Income (GNI) also grew by 9.9 percent during the period, while Net Primary Income (NPl) from the Rest of the World increased by 81.2 percent.
The country's economic growth has been affected by the pandemic and the ensuing restrictions, but the latest figures indicate a gradual return to pre-pandemic levels. Despite the challenges, the government has been implementing measures to support the economy, including monetary and fiscal policies and vaccination efforts to help boost consumer and investor confidence.
Economists and analysts have welcomed the latest growth figures, but they also cautioned that the pandemic continues to pose a risk to the economy. Nevertheless, the government is optimistic about the country's economic prospects, and with the continued support of various sectors, the Philippine economy is expected to further recover and grow in the coming quarters.
The growth was driven by various sectors, including wholesale and retail trade, repair of motor vehicles and motorcycles, financial and insurance activities, and other services. Major economic sectors such as agriculture, forestry, and fishing, industry, and services also posted positive growths of 2.2 percent, 3.9 percent, and 8.4 percent, respectively.
On the demand side, the Household Final Consumption Expenditure (HFCE) grew by 6.3 percent in the first quarter of 2023, while the government's final consumption expenditure (GFCE) grew by 6.2 percent. Gross capital formation saw a growth of 12.2 percent, while exports of goods and services grew by 0.4 percent. Imports of goods and services also increased by 4.2 percent.
The Gross National Income (GNI) also grew by 9.9 percent during the period, while Net Primary Income (NPl) from the Rest of the World increased by 81.2 percent.
The country's economic growth has been affected by the pandemic and the ensuing restrictions, but the latest figures indicate a gradual return to pre-pandemic levels. Despite the challenges, the government has been implementing measures to support the economy, including monetary and fiscal policies and vaccination efforts to help boost consumer and investor confidence.
Economists and analysts have welcomed the latest growth figures, but they also cautioned that the pandemic continues to pose a risk to the economy. Nevertheless, the government is optimistic about the country's economic prospects, and with the continued support of various sectors, the Philippine economy is expected to further recover and grow in the coming quarters.
May 11, 2023
