PH Economy Picks up at 5.9%, Accelerated Faster than Expected

9 November 2023 — Philippine economic growth accelerated faster than anticipated to 5.9% in the third quarter of 2023 led by industry and government spending, up from 4.3% in the previous quarter. However, the economy needs to grow 7.2% in the fourth quarter to achieve the government’s annual growth target of 6–7%. The NEDA Secretary stated the economy needs to achieve “at least 7.2% in Q4 to achieve the target.”

On the demand side, Government Spending expanded to 6.7% from 0.7% in the same quarter last year and Household Spending grew to 5.0%, while Investment (gross capital formation) contracted to -1.6% from a high of 18.2% in 2022. On the supply side, Services grew 5.5%, Industry 6.8%, and Agriculture 0.9%. Trade grew with exports of goods and services at 2.6% and imports of goods and services slowing down to -1.3%.

Some sub-sectors grew at a faster rate. Accommodation and Food Service activities grew at 20.0%, Other services (which includes arts, entertainment, and other service activities) at 16.3%, and Construction jumped to 14.0% from 3.0% in the previous quarter. Meanwhile, laggards during the third quarter were Agriculture (0.9%), Manufacturing (1.7%), and Public Administration and Defense (3.6%).

Sec. Balisacan noted that while inflation eased to 4.9% in October, “we will continue to prioritize measures protecting the people’s purchasing power and provide support to agricultural production, especially as El Niño is expected to continue in coming months.” On investment promotion, the government will also “leverage the full implementation of liberalization reforms.” He cites the passage of the PPP Act as one of the reforms boosting private sector participation, expected to be signed into law by the tail end of this year.
It is also important to note that two other economy-boosting bills are awaiting the President’s signature. These are the Ease of Paying Taxes and Internet Transactions measures. These reforms will be a boon for taxpayers, entrepreneurs, consumers, and all Filipinos. The bills are foreseen to create a more attractive investment climate and generate more and better jobs for the Filipino people.