Despite Slower Domestic Demand, Philippine Economy Grows 5.7% in First Quarter with Strong Rebound in Exports

Despite weaker consumer spending and slower domestic demand, the Philippine economy grew at 5.7% in the first quarter, slightly below the forecasted growth of 5.9% in a Reuters poll. The increase in gross domestic product was driven by a strong rebound in exports, particularly in the electronic products sector.

The country’s economic planning secretary, Arsenio Balisacan, expressed optimism about the country’s economic growth despite challenges both domestically and internationally. He highlighted the rebound in exports as a driving force behind this positivity and expressed confidence that the economy can still achieve the government’s full-year growth target of 6.0%-7.0%.

However, inflation remains a concern for the country, with domestic demand growing by only 4.6% in the first quarter, which is slowest rate since 2021. The government had to revise its growth target range last month due to high inflation and an anticipated global economic slowdown. Despite these challenges, Balisacan emphasized that the Philippine economy continues to show resilience and growth potential on a seasonally adjusted basis.