(Eagle News)–The Philippine economy grew by 5.6 percent in 2023, after expanding by 5.6 percent in the fourth quarter of the same year.
According to the National Economic Development Authority, citing Philippine Statistics Authority data, this was slower than the revised growth of 6.0 percent in Q3 2023, and was short of the government’s 6.0-7.0 percent 2023 full-year target.
However, NEDA said the Philippines is still the second-fastest growing economy among major emerging economies in the region that have already released their Q4 2023 real gross domestic product (GDP) growth.
China’s is at 5.2 percent and Malaysia’s at 3.4 percent.
Only Vietnam’s economy grew faster, at 6.7 percent.
NEDA said the upbeat domestic demand was mainly supported by the strong growth in capital formation and higher household spending.
However, this was offset by the contraction in government expenditures.
Full-year domestic demand moderated to 4.8 percent as economic activities normalized.
Growth in total investments, meanwhile, accelerated to 11.2 percent in Q4 2023, a turnaround from the 1.4 percent contraction in Q3 2023.
Growth in household consumption accelerated to 5.3 percent in Q4 2023 from 5.1 percent in Q3 2023, while government spending contracted by 1.8 percent after growing 6.7 percent in Q3 2023 and 3.3 percent in Q4 2022.
As for the industry sector, NEDA said growth moderated to 3.2 percent in Q4 2023 from 5.6 percent in Q3 2023.
The agriculture sector grew by 1.4 percent in Q4 2023, up from 0.9 percent in Q3 2023.
“To achieve 6.5 to 7.5 percent growth in 2024 and make growth inclusive, we need to continue addressing supply-side constraints, easing investment restrictions, and protecting the purchasing power of Filipino households,” NEDA Secretary Arsenio Balisacan said.
He said the government “must continue implementing measures that enhance the agriculture sector’s productivity, mitigate the impact of El Niño and the persistent spread of African Swine Flu (ASF) and other pests and diseases, improve the ease of doing business, and protect the poor and vulnerable segments of our population from price instability” amid tight supply conditions.
The executive and legislative branches of the government need to collaborate closely for the swift passage of crucial tax and expenditure reforms that can help expand the government’s fiscal space, he added.
