A man pushes a goods cart through a crowded market in Manila, Philippines on September 21, 2022. (Photo: AFP/VNA) Hanoi (VNA) - The Philippines recorded economicgrowth beyond expectations in 2022, fueled by strong consumer spendingdespite rising consumer prices.
According to the Philippine Statistics Authority, the country's gross domestic product (GDP) expanded 7.6% last year, better than the 5.7% growth in the previous year. It also surpassed the government’s target of 6.5-7.5%.
"There was so muchpent-up demand… and that significantly improved economic activities,"Socioeconomic Planning Secretary Arsenio Balisacan was quoted by Agence France-Presse news agency as saying. "We are confidentthat we will remain in our high growth trajectory," he added.
Inthe last three months of last year, the economy expanded 7.2% against a 6.6 % median estimate in a Bloomberg survey ofeconomists.
Balisacan attributed the growth to theimprovements in labour market conditions, increased tourism, revenge andholiday spending, and resumption of face-to-face classes supported growth in thequarter.
Agricultural production, however,grew just 0.5% last year, barely contributing to the overall output. He said that consumer spending weathered rising inflation as pent-up demand to spend in restaurants and entertainment as well as more jobs fueled domestic demand.
Inflation hit 8.1% inDecember, the fastest in 14 years, prompting the central bank to aggressivelyraise interest rates. Inflation stood at 5.8% for the full year, abovethe bank's target.
Balisacan said keepingcommodity prices in check and ensuring food security are at the top of the government’s priorities "as global and domestic headwinds persist",adding that officials are aiming for growth of 6 to 7% this year amid fears ofa global economic slowdown./.
