Push Admin

Consumers buy round fruits at a market in Quezon City on December 30, 2023. Maria Tan, ABS-CBN News/File

Article (news)

20231230-roundfruit-vendor-market-MT-16

ABS-CBN News

<p>MANILA <strong>(2nd UPDATE)</strong> -- The Philippine&#x27;s gross domestic product (GDP) expanded by 5.6 percent in 2023, missing the government target of 6 to 7 percent, the state statistics bureau said on Wednesday.</p><p>The full-year GDP growth is also slower than the 7.6 percent growth recorded in 2022, the Philippine Statistics Authority said.</p><p>In the fourth quarter, the economy expanded by 5.6 percent, from the 6 percent revised GDP growth in the third quarter of 2023.</p><div> </div><div><span class="fr-img-caption fr-fic fr-dib" style="width:660px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/CHART1.png" style="width:950px" class="fr-fic fr-dib" alt="Performance of the Philippine Economy. Chart: Philippine Statistics Authority "/><span class="fr-inner" style="text-align:left"><span id="isPasted" style="color:rgb(65, 65, 65);letter-spacing:normal;orphans:2;text-align:left;text-indent:0px;text-transform:none;widows:2;word-spacing:0px;-webkit-text-stroke-width:0px;white-space:normal;background-color:rgb(255, 255, 255);text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial;display:inline !important;float:none">Performance of the Philippine Economy. <em>Chart: Philippine Statistics Authority</em></span><em> </em></span></span></span></div><p>Discounting the economy&#x27;s 9.5 percent shrink in 2020 due to COVID-induced lockdowns, this is the slowest full-year growth since 2011, according to National Statistician Dennis Mapa. </p><p>Despite missing the target, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said the economic performance of the country was still among the best in Asia.</p><p>&quot;Among those that have already released their Q4 2023 real GDP growth figures, we follow Vietnam with 6.7 percent, while surpassing China, 5.2 percent), and Malaysia, 3.4 percent,&quot; he told reporters. </p><p>&quot;More importantly, our full-year GDP for 2023 is now 8.6 percent higher than pre-pandemic levels,&quot; he added.</p><div><br/></div><p>The PSA said the agriculture, forestry, and fishing sectors grew by 1.4 percent in the fourth quarter. The industry sector expanded by 3.2 percent, while the services sector ballooned by 7.4 percent. </p><p>On the demand side, household final consumption grew year-on-year by 5.3 percent in the fourth quarter of 2023. Gross capital formation rose by 11.2 percent, but government expenses declined by 1.8 percent.</p><p>Exports declined by 2.6 percent, while imports increased by 2.9 percent.</p><div><br/></div><p>Balisacan said government expenditure declined in 2023 as they focused on fiscal consolidation. </p><p>He also noted that government expenses were up in 2022 as it was an election year, and people were still going for COVID-19 vaccines. </p><p>&quot;We want to achieve fiscal consolidation, which means lowering the fiscal deficit tsaka yung government debt, but still able to provide enough for social protection, mag-ayuda for the poor, at saka yung financing the critical programs of government sa health, sa education, at saka sa infrastructure program natin,&quot; he said.</p><div><br/></div><p>He noted, however, the increase in household spending, as well as the growth in spending for restaurants and hotels (16.2 percent), transport (12.2 percent), and recreation (7.3 percent).</p><p>Asked if the country could maintain this consumption momentum given the still-elevated prices of goods and high interest rates, Balisacan said, &quot;Yung impact kasi ng pag-change ng interest rates is hindi agad mafi-feel ‘no, yung mga longer-term effects niya mag a few quarters down the line.&quot;</p><div><br/></div><p>&quot;Kaya kung itong mga nakikita natin ngayon...is possibly the effects of yung mga past increase in interest rates pa yun, yung early last year, tsaka even yung 2022,&quot; he said.</p><p>He said improving household incomes could help stabilize consumption amid the rising prices of goods.</p><div><br/></div><p>&quot;As we have seen in the other tables, national income accounts, incomes from all sectors have risen. The labor market remains robust, and so employment opportunities have grown,&quot; he said.</p><p>&quot;So on the one hand, the elevated prices could have reduced spending but on the other hand you have income raising those spendings, and the net effect is still a positive.&quot;</p><div><br/></div><p>The economic manager, however, stressed that the Philippines has to diversify its economy and push for broad-based growth.</p><p>&quot;The positive thing about the services is that the services that we have today are not the kind of services sector that we have 20 years ago or 30 years ago. Now many of pour services sector now, internationally traded—yung IT-BPM natin, napakalakas yun. And the kind of employment they generated is high quality,&quot; he noted.</p><div><br/></div><p>&quot;Manufacturing is one sector we really have to work harder to regain the prominence of that sector,&quot; he said.</p><p>&quot;The reason we are pushing hard for manufacturing is that it’s in every country that you see, that I see, where there is sustained poverty reduction, rapid reduction of poverty. For obvious reason: the quality of jobs there is so much better than anywhere else because the complementary capital complementary to labor is present there, and in greater amount than in other sectors of the economy,&quot; he explained.</p><p>&quot;And I don’t think we have lost manufacturing. We have just to work harder to see what types of manufacturing we can still recover.&quot;</p><div><br/></div><p>Economic managers have said the <a href="https://news.abs-cbn.com/business/01/26/24/ph-eyes-65-to-75-percent-growth-this-year-neda">growth target</a> for 2024 is at 6.5 to 7.5 percent. </p><div><br/></div><div><strong>- With reports from Jekki Pascual, ABS-CBN News</strong></div>

<p>The Philippine's gross domestic product (GDP) expanded by 5.6 percent in 2023, missing the government target of 6 to 7 percent, the state statistics bureau said on Wednesday.</p>

The Philippine's gross domestic product (GDP) expanded by 5.6 percent in 2023, missing the government target of 6 to 7 percent, the state statistics bureau said on Wednesday.

Philippine economy grows 5.6 pct in 2023, below gov't target

News

Entertainment

Lifestyle

Sports

Metro.Style

More

Traffic

Manila

Horoscope

Business

Philippine economy grows 5.6 pct in 2023, below gov't target

ABS-CBN News

Published Jan 31, 2024 10:33 AM PHT

|

Updated May 28, 2024 05:41 PM PHT

Read More:

ANC promo

economy

economic growth

philippine statistics authority

gdp

2023 gdwp

2023 q4 gdp

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

Corporate

Investors

Governance

International Distribution

Corporate

Governance

Investors

International Distribution

NPC Seal of Registration

Privacy Policy

AI Policy

Terms of Service

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.