THE growth of the Philippine economy slowed to 6.4 percent in the first quarter of 2023, according to the latest government data.
On Thursday, the Philippine Statistics Authority (PSA) said GDP growth reached 6.4 percent, the lowest in eight quarters when GDP growth contracted 3.8 percent in the first quarter of 2021.
PSA data showed GDP growth was at 8 percent in the first quarter of 2022 and 7.1 percent in the fourth quarter of last year.
“While this quarter’s growth figure is lower than the 8 percent year-on-year growth rate recorded in the first quarter of 2022, we need to exercise caution in interpreting this as a slowdown since the previous year’s growth came from a low base. Rather, the economy is normalizing its previous trend,” National Economic and Development Authority (Neda) Secretary Arsenio M. Balisacan explained in a statement on Thursday.
PSA said the main contributors to the first quarter 2023 growth were: Wholesale and retail trade; repair of motor vehicles and motorcycles, 7 percent; Financial and insurance activities, 8.8 percent; and Other services, 36.5 percent.
Major economic sectors — Agriculture, forestry, and fishing; Industry; and Services — all posted positive growths in the first quarter of 2023 with 2.2 percent, 3.9 percent, and 8.4 percent, respectively.
On the demand side, Household Final Consumption Expenditure (HFCE) grew by 6.3 percent in the first quarter of 2023. The following items also recorded growth: Government Final Consumption Expenditure (GFCE), 6.2 percent; Gross capital formation, 12.2 percent; Exports of goods and services, 0.4 percent; and Imports of goods and services, 4.2 percent.
The Gross National Income (GNI) grew by 9.9 percent in the first quarter of 2023. Likewise, Net Primary Income (NPl) from the Rest of the World increased by 81.2 percent during the period.