The Philippine economy showed moderate acceleration in the first quarter of the year, with gross domestic product (GDP) growing by 5.7% compared to the same period last year. This was an improvement from the previous quarter’s 5.5% growth, but weaker consumer spending weighed on overall economic performance. Despite this, government officials remain optimistic about the country’s economic outlook.
Economic Planning Secretary Arsenio Balisacan highlighted the rebound in export growth, particularly driven by increased shipments of electronic products. Despite challenges both domestically and internationally, he expressed confidence in the economy’s resilience and growth prospects. The government is aiming for a full-year growth target of 6.0%-7.0%, down from the earlier projection of 6.5%-7.5% due to high inflation and global economic concerns.
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, there are positive signs of growth and resilience as exports grew by 9.5% compared to the previous year, marking the fastest growth since the fourth quarter of 2022
