Despite facing challenges, the Philippine economy showed moderate acceleration in the first quarter of the year. Gross domestic product (GDP) grew by 5.7% compared to the same period last year, slightly below the forecasted 5.9% growth, but still an improvement from the previous quarter’s 5.5%. Weaker consumer spending weighed on overall economic performance.
Inflation continues to be a factor affecting domestic demand, with growth slowing to 4.6% in the first quarter. However, despite this challenge, there are positive signs of resilience in the economy as exports increased by 9.5%, marking the fastest growth since the fourth quarter of 2021.
Government officials, including Economic Planning Secretary Arsenio Balisacan, remain optimistic about the country’s economic outlook. Balisacan highlighted that while there are challenges both domestically and internationally, he expressed confidence in the economy’s resilience and growth prospects. Despite high inflation and global economic concerns, he is aiming for a full-year growth target of 6.0%-7.0%, down from an earlier projection of 6.5%-7.5%.
Overall, while there have been challenges in recent quarters, there are positive signs that indicate growth and resilience in the Philippine economy as it continues to focus on achieving its growth targets despite uncertainties in