Philippines economy grows 7.6%, beating expectations

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 economic growth beyond expectations in 2022, fueled by strong consumer spending despite 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 much pent-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 confident that we will remain in our high growth trajectory," he added.

In the last three months of last year, the economy expanded 7.2% against a 6.6 % median estimate in a Bloomberg survey of economists.

Balisacan attributed the growth to the improvements in labour market conditions, increased tourism, revenge and holiday spending, and resumption of face-to-face classes supported growth in the quarter.

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% in December, the fastest in 14 years, prompting the central bank to aggressively raise interest rates. Inflation stood at 5.8% for the full year, above the bank's target.  

Balisacan said keeping commodity 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 of a global economic slowdown./.