Philippine economy grows 6.4 per cent in first quarter, beating expectations

The economy of the Philippines experienced a 6.4% expansion in the first quarter compared to the previous year, according to the country’s statistics agency. This development surpasses expectations, with analysts previously predicting a 6.1% annual growth in the gross domestic product (GDP). On a quarterly basis, growth slowed to 1.1% compared to the earlier reported 2.4% expansion in the previous quarter.

The stronger-than-anticipated economic growth in the Southeast Asian country aligns with the government’s target of 6.0% to 7.0% for 2023. The country’s Economic Planning Secretary commented during a press conference that the Philippines is now returning to its high-growth trajectory despite global headwinds. However, potential interest rate hikes by the central bank might dampen future growth.

The government expressed its readiness to withstand shocks and risks to the growth outlook, acknowledging that high inflation remains a challenge but seems to have reached its peak. The robust first-quarter economic performance indicates a positive outlook for the country’s economy in the foreseeable future.