People talk at a market in Quezon City, the Philippines, May 12, 2023. The Philippine economy expanded by 6.4 percent year-on-year in the first quarter of 2023, the Philippine Statistics Authority (PSA) said Thursday. (Xinhua/Rouelle Umali)
MANILA, May 11 (Xinhua) -- The Philippine economy expanded by 6.4 percent year-on-year in the first quarter of 2023, the Philippine Statistics Authority (PSA) said Thursday.
PSA head Dennis Mapa said the gross domestic product (GDP) growth in the first three months was the slowest since Philippines started to recover from the pandemic in the second quarter of 2021.
Major economic sectors, such as agriculture, forestry, and fishing; industry; and services, all posted positive growths with 2.2 percent, 3.9 percent, and 8.4 percent, respectively, Mapa told a news conference.
National Economic and Development Authority Secretary Arsenio Balisacan said the quarter's growth figure is lower than the 8 percent year-on-year growth rate in the first quarter of 2022.
"We need to exercise caution in interpreting this as a slowdown since the previous year's growth came from a low base," Balisacan said at the press conference.
"The Philippine 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 various challenges and headwinds we have faced," he added.
The Southeast Asian country has set its GDP target for 2023 at 6 to 7 percent.
Balisacan said the government must remain vigilant as high inflation remains a challenge.
The headline inflation rate "appears to have reached its highest point, decelerating to 6.6 percent in April from 7.6 percent in March and 8.6 percent in February," he added.
Other risks impacting the GDP growth targets include the El Nino phenomenon, animal diseases such as African swine fever and avian flu, as well as geopolitical tensions.
"We also stand ready to respond to the shocks and risks to our growth outlook, both domestic and external, foreseen and unforeseen," Balisacan said.
According to him, the Philippine economic outlook "in the near and medium term remains solid despite various risks and challenges."
The Philippines' GDP expanded by 7.6 percent in 2022, 5.7 percent in 2021 after its economy contracted 9.6 percent in 2020 due to the COVID-19 pandemic. ■