Services and industry continued to drive Philippine economic growth in the first quarter, albeit at its slowest pace since gross domestic product started to rebound from the ill-effects of the COVID-19 pandemic in the second quarter of 2021.
The Philippine Statistics Authority reported GDP rising 6.4 percent year-on-year in the first quarter and 1.1 percent from the fourth quarter. Gross national income, meantime, expanded 9.9 percent in the first quarter while net primary income from the rest of the world surged 81.2 percent.
Agriculture, forestry, and fishing rose 2.2 percent, industry was up 3.9 percent while services was higher by 8.4 percent. Services contributed 5.0 percentage points to GDP, industry added 1.2 percentage points while agriculture and forestry contributed 0.2.
PSA said per capita GDP grew by 5.2 percent in the first quarter slower than the 6.7 percent growth in the year-earlier period.
Household final consumption expenditure grew by 6.3 percent in the first quarter while government final consumption expenditure was up 6.2 percent.
Gross capital formation rose 12.2 percent. Export was flat at 0.4 percent while import grew 4.2 percent.
Economic Planning Secretary Arsenio Balisacan said the growth in the first quarter was within the revised 6 percent to 7 percent GDP growth target for this year and the fastest growth pace among Asian countries that have so far reported their economic output performance.
He said the slower growth in the first quarter compared to those seen in the previous seven quarters is an indication “the economy is normalizing its previous trend.”
“The better-than-expected first quarter performance this year implies that we are returning to our high-growth trajectory despite the various challenges and headwinds we have faced,” said Balisacan.
“However, we have much more work to realize our social and economic transformation agenda toward a prosperous, inclusive and resilient Philippines,” he added.
He said higher inflation and interest rates have tempered growth, and that the government is now preparing to help the economy cope well with the coming El Nino episode.
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