Slower-than-Forecasted GDP Growth, But Philippine Economy Rebounds with Strong Export Growth

The Philippine economy showed moderate acceleration in the first quarter of the year, despite challenges both domestically and internationally. Gross domestic product (GDP) grew by 5.7% compared to the same period last year, slightly below the 5.9% forecast in a Reuters poll. While this was an improvement from the previous quarter’s 5.5% growth, weaker consumer spending weighed on overall economic performance.

Inflation continues to be a factor affecting domestic demand, with growth in this area slowing to 4.6% in the first quarter. This is the weakest growth rate since a contraction in the first quarter of 2021. However, the economy demonstrated resilience with a 9.5% increase in exports compared to the previous year, marking the fastest growth since the fourth quarter of 2022.

Government officials, including Economic Planning Secretary Arsenio Balisacan, remain optimistic about the country’s economic outlook despite these challenges. Balisacan highlighted the rebound in export growth, particularly driven by increased shipments of electronic products, and expressed confidence in the economy’s resilience and growth prospects