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 these challenges, government officials, including Economic Planning Secretary Arsenio Balisacan, remain optimistic about the country’s economic outlook.
Balisacan highlighted the rebound in export growth, particularly driven by increased shipments of electronic products. Inflation continues to be a factor affecting domestic demand, with growth in this area slowing to 4.6% in the first quarter. However, the economy demonstrated resilience with a 9.5% increase in exports compared to the previous year, marking the fastest growth since the fourth quarter of 2022.
The government is focused on maintaining momentum and achieving its growth targets despite uncertainties in the global economic landscape. Officials are aiming for a full-year growth target of 6.0%-7.0%, down from an earlier projection of 6.5%-7.5% due to high inflation and global economic concerns