Philippines GDP grows 7.4 per cent in second quarter of 2022

MANILA, Aug 13 (Bernama): The Philippine economy expanded by 7.4 per cent year-on-year in the second quarter of 2022 as the country eased the Covid-19 mobility restrictions, allowing more social and economic activities to thrive, the Philippine Statistics Authority (PSA) has announced this week.

PSA head Dennis Mapa said the main contributors to the gross domestic product (GDP) growth in this period were wholesale and retail trade, construction, and transportation and storage.

He added that the significant economic sectors - agriculture, forestry, and fishing, as well as industry and services - all posted positive growths in the second quarter.

On the demand side, Mapa said household final consumption expenditure grew by 8.6 per cent; the government's final consumption expenditure rose by 11.1 per cent; exports of goods and services, by 4.3 per cent; and imports of goods and services, by 13.6 per cent.

The recovery "remains strong due to improved risk management," Socioeconomic Planning Secretary Arsenio Balisacan said at the press conference.

Balisacan attributed the second quarter growth to the easing of pandemic restrictions, acceleration of the vaccine rollout and lifting of tourism restrictions.

He said the April to June growth figure places the country as the second best-performing economy in the region, next to Vietnam's 7.7 per cent, adding that the country will pursue a "full reopening" of the economy.

"The overall goal is to reinvigorate job creation and reduce poverty," Balisacan said.

Last month, days after Philippine President Ferdinand Romualdez Marcos taking his office, the new administration lowered its GDP target band for this year to 6.5 to 7.5 per cent from 7 to 8 per cent due to "recent external and domestic developments".

The Manila-based Asian Development Bank forecasts a 6.5 per cent GDP growth in 2022 and 6.3 per cent in 2023.

The South-East Asian country's GDP grew by 5.7 per cent in 2021 after the economy contracted 9.6 per cent in 2020 due to the pandemic. - Bernama