The Philippine economy showed less growth than expected in the first quarter, according to government data released on Thursday. Gross domestic product increased by 5.7% from the same period last year, slightly below the 5.9% forecast in a Reuters poll. While this was an improvement from the previous quarter’s 5.5% growth, weaker consumer spending offset the rebound in export growth.
Despite the challenges both domestically and internationally, Economic Planning Secretary Arsenio Balisacan remains optimistic about the country’s economic growth. He highlighted the strong rebound in exports, particularly in the electronic products sector, as a driving force behind this positivity. Balisacan expressed confidence that the economy can still achieve the government’s full-year growth target of 6.0%-7.0%.
Inflation remains a concern, with domestic demand growing by 4.6% in the first quarter, the slowest rate since 2021. The government had to revise its growth target range last month due to high inflation and the anticipated global economic slowdown. Despite these challenges, Balisacan emphasized that the Philippine economy continues to show resilience and growth.
On a seasonally adjusted basis, economic growth slowed to 1.3% in the first quarter from 2.1% in the previous quarter, slightly above the 1.0% growth forecast in the Reuters poll. Export growth was a bright spot, rising by 9.5% from a year earlier, the fastest rate since the fourth quarter of 2022. Overall, the Philippine economy faces challenges but continues to show signs of strength and growth potential.