By Alec Go
The Philippine economy grew faster amid soaring inflation and the recovery from the impact of the COVID-19 pandemic and other global shocks.
According to the Philippine Statistics Authority (PSA), the Philippines posted a 7.6% gross domestic product (GDP) growth in the third quarter of 2022, higher than 6.3% forecast growth. This is a slight improvement from the previous quarter’s 7.5%.
“This turnout puts us second in growth in the ASEAN region, behind Vietnam’s 13.7 percent and in front of Indonesia’s 5.7 percent. On a seasonally adjusted quarter-per-quarter basis, our economy grew by 2.9 percent, signifying our solid posture against current domestic and external risks,” Socioeconomic Planning Secretary Arsenio Balisacan said.
“With this, we are on track to achieving the government’s growth target of 6.5 to 7.5 percent for 2022. Given the latest GDP outturn, our economy needs to grow by 3.3 to 6.9 percent in the fourth quarter,” he added.
The PSA said the major contributors of the growth were wholesale and retail trade, with repair of motor vehicles and motorcycles at 9.1%, financial and insurance activities at 7.7%, and construction at 12.2%.
The agriculture sector also posted a positive growth of 2.2%, industry sector with 5.8%, and services sector with 9.1%. Household consumption also improved 8.0% in the third quarter.
Balisacan said the economic expansion can be attributed to the further easing of mobility restrictions, the resumption of in-person classes, and opening of borders.
In a roundtable discussion attended by chief executive officers in Cambodia on Thursday, Nov. 10, President Ferdinand R. Marcos Jr. expressed belief that the Philippine economy is headed toward the right direction.
“And as I was telling some of the Cabinet members, I think the Philippine economy, the important elements are in place, and you can feel that our economy is trying to grow but is really being pummeled by the forces outside of which we have no control,” he said.
Earlier this week, the PSA reported a joblessness rate decline in September to 5.0% and an improvement in employment rate to 95.0%.
Balisacan, however, noted that “achieving economic growth is a necessary but not sufficient condition” to boost job creation and reduce poverty, as he reiterated that food sufficiency remains the top priority of the administration.
“To stabilize the rising inflation and protect the purchasing power of Filipinos—especially the vulnerable sectors of the economy—the government is providing cash transfers, fuel discounts, and other forms of targeted assistance,” he said.
“We are also considering the extension of Executive Order No. 171, which significantly reduces tariffs on rice, pork, and corn, thereby enhancing food security while food prices remain elevated,” he added.
