Despite turbulent external challenges that left Filipinos feeling high inflation, the Philippine economy ended 2022 on a powerful note. However, there are increasing signals that economic growth has probably peaked and can decelerate this 12 months.
The country’s gross domestic product, which incorporates all goods and services produced there, rose 7.6% from a 12 months earlier, in accordance with data released Thursday by the Philippine Statistics Authority. This is an improvement on the 5.7% growth recorded within the previous 12 months.
The latest data fell wanting analysts’ expectations of seven.5% growth in 2017. Moreover, it exceeded the Marcos government’s 2022 GDP growth goal of 5.8%.
In the fourth quarter of 2022, economic growth was supported by a wave of consumer spending that occurred throughout the vacation season and beyond. In the last three months of last 12 months, the economy grew by 7.2% year-on-year, although at a slower pace than the 7.6% growth recorded within the previous quarter.
It has been two years because the epidemic sent the national economy to lows not seen since World War II, and this 12 months has been one other 12 months of growth. While the Philippine economy managed to decelerate its modest growth within the third quarter, consumer spending was a vivid spot.
All in all, the past 12 months was bittersweet for Filipinos. At the start of the second quarter, in a divisive election 12 months through which the late dictator’s son was elected president, the national government lifted epidemic restrictions.
The first few months of Ferdinand Marcos Jr.’s presidency. showed an enormous increase in consumer spending. However, the Philippines’ reopening narrative has been marred by supply chain problems, high fuel prices and the depreciation of the peso. The decline in the general public’s purchasing power resulting from rising consumer prices is believed to have caused inflation to peak in December 2022.
Source: Philstar.com
