Philippines Economy Expanded by 7.6%, Above Forecast
Despite turbulent external challenges that made Filipinos endure high inflation, the Philippine economy concluded 2022 on a high note. However, there are rising signals that growth has likely peaked and a slower trajectory is on the way this year.
According to data released on Thursday by the Philippine Statistics Authority, the country's gross domestic product, which includes all goods and services produced there, increased 7.6% over the previous year. This is an improvement above the 5.7% growth seen in the prior year.
The most recent number fell short of analysts' predictions of a 7.5% gain in 2017. Additionally, it exceeded the 5.8% GDP growth target set by the Marcos government for 2022.
The fourth quarter of 2022 saw economic growth underpinned by a wave of consumer spending that occurred throughout the holiday season and other times. The economy grew 7.2% year over year in the final three months of last year, though at a slower rate than the 7.6% growth seen in the quarter before.
Two years had passed since the epidemic caused the domestic economy to experience lows not seen since World War II, and this year marked another year of growth. As the Philippine economy managed to scrape out small growth in the third quarter, consumer spending emerged as a bright spot.
As it stands, the previous year was bittersweet for Filipinos. Early in the second quarter, during a divisive election year in which the late dictator's son was elected president, the national government lifted epidemic restrictions.
The first several months of President Ferdinand Marcos Jr. showed a huge increase in consumer expenditure. But the Philippines' reopening narrative was marred by supply chain problems, high fuel prices, and a depreciating peso. The public's declining purchasing power caused by growing consumer prices is thought to have caused inflation to peak in December 2022.
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