PH economy expands to 5.9% in Q3

MANILA, Philippines: Following a sluggish performance in the second quarter, the Philippine economy bounced back to 5.9 percent in the third quarter of this year, the government reported on Thursday.

The result was significantly higher than the 4.3 percent in the previous quarter but lower than the 7.7 percent recorded in the same quarter last year.

This is also markedly higher than the 4.9-percent median in a Manila Times poll of economists.

Socioeconomic Planning Secretary Arsenio Balisacan said that the third quarter economic print was broadly based, with all major economic sectors posting growth, with agriculture growing at 0.9 percent, industry at 5.5 percent, and services at 6.8 percent.

“This performance makes our economy the fastest among the major emerging economies in Asia that have released their third-quarter 2023 GDP growth,” Balisacan said.

Vietnam grew at 5.3 percent; Indonesia and China, 4.9 percent, and Malaysia at 3.3 percent.

Balisacan, however, emphasized that the economy must achieve a 7.2 percent year-on-year growth in the fourth quarter of 2023 to meet the government’s 6.0 to 7.0 percent target for this year.

On the demand side, Household final consumption expenditure (HFCE) grew by 5.0 percent in the third quarter of 2023.

The government final consumption expenditure (GFCE), and exports of goods and services also posted growths of 6.7 percent and 2.6 percent, respectively.

Conversely, the gross capital formation and imports of goods and services fluctuated by 1.6 percent and 1.3 percent, respectively.

The Gross National Income (GNI) grew by 12.1 percent in the third quarter of 2023. Likewise, Net Primary Income (NPl) from the Rest of the World grew by 112.5 percent during the period.

Balisacan asserted that the government is already evaluating its progress toward the goals and strategies of the Philippine Development Plan.

“We would like to assure all Filipinos that we will make every effort to remain on course in attaining the economic and social transformation targets of the Philippine Development Plan 2023-2028,” Balisacan said.