ECONOMIC GROWTH. National Statistician Dennis Mapa (left) and National Economic and Development Authority Secretary Arsenio Balisacan hold a press briefing on Thursday (May 9, 2024) in Quezon City for the first quarter 2024 performance of the Philippine economy. Balisacan said Philippine economic growth at 5.7% outpaced that of China, Indonesia, and Malaysia. (PNA photo by Ben Briones)
MANILA – The Philippine economy grew by 5.7 percent in the first quarter of the year, surpassing other major economies in the region.
In a briefing on Thursday, National Statistician Dennis Mapa said the economic growth during the quarter was higher than the 5.5 percent seen in the last quarter of 2023.
Mapa said, however, it was lower than the 6.4 percent economic growth seen in the first quarter of last year.
National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan noted that the Philippine economy continues to demonstrate resilience and growth despite the domestic and external headwinds.
"Despite our challenges on both domestic and international fronts, our economy continues to demonstrate remarkable resilience and growth. This performance retains the country's position as a leading force among Asia's emerging economies," he said.
Balisacan said the first quarter Philippine gross domestic product growth rate is about the same as Vietnam's, and surpassed other major economies such as China at 5.3 percent, Indonesia at 5.1 percent, and Malaysia at 3.9 percent.
All major economic indicators which include agriculture, forestry, and fishing; industry; and services posted year-on-year growth in the first quarter at 0.4 percent, 5.1 percent, and 6.9 percent.
Household final consumption expenditure and government final consumption expenditure posted lower growth rates at 4.6 percent and 1.7 percent from a year ago's 6.4 percent and 6.2 percent.
Balisacan said the slowdown in household spending was due to the elevated prices of major food items and the heat wave.
"Meanwhile, government spending also slowed down, primarily due to the sliding of a large amount of expenditure to April this year, whereas the government made such spending in March last year," he said.
Gross capital formation also posted a lower growth of 1.3 percent from 12.8 percent last year, while imports of goods and services also slowed to 2.3 percent from 4.2 percent.
Growth of exports of goods and services, however, accelerated to 7.5 percent from 1.1 percent in the first quarter of 2023.
Balisacan said the growth in exports was mainly driven by the recovery in the exports of electronics products.
El Niño, climate change
Balisacan said while El Niño affected some sectors of the economy, the mitigation efforts that the government put in place, softened the impact.
"I would have thought that the impact would be worse than what actually happened. It's not to say that it was not a serious harm especially to some areas and certain groups of our population. But nonetheless, I think that we are able to bounce back from an otherwise worse situation," he said.
He said given the extreme weather conditions and climate change, the government needs to invest more in research and innovation to enable the agriculture and food systems to cope with the challenge.
Aside from adjustments in planting calendars, he said the government is using strategic trade policies to augment domestic production and establish mechanisms to empower consumers to combat inflation.
"We will continue to implement a whole-of-government approach to alleviate the impact of El Niño while preparing for La Niña. We are collaborating with distribution utilities to manage the increasing electricity demand and working with private water concessionaires to address leaks and wastage, ensuring water security," Balisacan said.
He also cited the need to build effective irrigation, drainage, and flood control systems.
He said the government acknowledges the urgency of addressing the impact of climate change.
"The swift decision to revert to the old school calendar is a crucial step to protect the health of the students and teachers. However, much more needs to be done," he said.
"It is important to develop an action plan to ensure the health and safety of all, especially the vulnerable; install the necessary cooling features in workspaces, schools, homes, and public spaces; adjust work schedules as necessary, but ensure business and service continuity," he added.
Balisacan is optimistic that despite the risks to growth, the 6 to 7 percent economic growth will be attained this year.
"Despite various risks and challenges, the economic outlook for the Philippines in the near and medium term remains bright. With hard work and the right policies in place, we are confident that we will achieve our growth target of 6.0 to 7.0 percent this year. The Marcos Administration remains committed to achieving rapid, sustained, and inclusive economic growth, leading to a matatag, maginhawa, at panatag na buhay for all Filipinos," Balisacan said. (PNA)
