The Philippine economy grew 4.3 percent in the second quarter of 2023, slower than 6.4 percent in the first quarter and 7.5 percent a year ago, amid the uncertain global environment highlighted by elevated inflation and higher interest rates, latest data from the Philippine Statistics Authority show.
The PSA said Thursday this brought the average gross domestic product growth in the first half to 5.3 percent, below the 2023 target range of 6 percent to 7 percent.
National Economic and Development Authority Secretary Arsenio Balisacan said to achieve at least the lower end of the target, the economy should grow by 6.6 percent in the second half.
“This remains attainable,” Balisacan said.
National statistician and civil registrar general Dennis Mapa said the second-quarter expansion was driven by wholesale and retail trade; repair of motor vehicles and motorcycles, which grew by 5.3 percent; financial and insurance activities, 5.0 percent; and transportation and storage, 17.3 percent.
The agriculture, forestry and fishing sector grew 0.2 percent in the second quarter; industry, 2.1 percent; and services 6.0 percent.
The PSA said that on the demand side, household final consumption expenditure grew by 5.5 percent in the second quarter. Exports of goods and services rose 4.1 percent, while imports of goods and services went up 0.4 percent.
Meanwhile, the government final consumption expenditure and gross capital formation contracted 7.1 percent and -0.04 percent, respectively.
The gross national income expanded by 8.6 percent in the second quarter, net primary income from the rest of the world increased 90.6 percent during the period.
The interagency Development Budget Coordinating Committee earlier kept the 6 to 7 percent GDP target range for the year and its growth assumption of 6.5 percent to 8 percent for 2024 to 2028, taking into account the risks posed by El Nino and other natural disasters, global trade tensions, and value chain disruptions, among other factors. The economy grew 7.6 percent in 2022, the highest in 46 years, following the reopening of the economy to greater normalcy.