MANILA (Bernama): The Philippine economy grew by 5.6 per cent in 2023 after expanding by 5.6 per cent in the fourth quarter, below the 6 to 7 per cent target range for 2023 set by the government, the Philippine Statistics Authority (PSA) has announced.
PSA head Dennis Mapa told a press conference that wholesale and retail trade, repair of motor vehicles and motorcycles, financial and insurance activities, and construction buoyed the gross domestic product (GDP) growth in 2023, reported Xinhua.
The government forecasts the country's GDP to expand by 6.5 to 7.5 per cent in 2024.
The Philippine Statistics Authority also reported on Wednesday, January 31, that fourth quarter growth for 2023 was at 5.6%. In the same quarter in 2022, growth reached 7.1%.
The country’s GDP growth of 5.9% in the third quarter of 2023 had been the fastest in the region, driven by a surge in government spending that compensated for slower domestic consumption.
Despite economic growth missing the government’s target, the Philippines remains one of the best performing economies in Asia, among those that have already released their fourth-quarter figures. Here’s a rundown of the countries mentioned by National Economic and Development Authority Secretary Arsenio Balisacan:
Growth for the year had to contend with rising prices as average inflation for 2023 hit 6%, far above the 2% to 4% target of the government.
In response, the Bangko Sentral ng Pilipinas has taken a hawkish stance, raising its key policy rate. But though rate hikes can be a tool to bring inflation under control, economists warned that excessive hikes could affect GDP growth as consumers and businesses find it more expensive to borrow money. - Bernama
