Economy grew by 5.6% in 2023

Gov't misses target due to inflation, interest rate dra

- LOUELLA DESIDERIO

The Philippine economy expanded at a slower pace in 2023 than the previous year, falling below the government's growth target amid high inflation and interest rates that affected consumption.

National Statistician Dennis Mapa said in a press briefing yesterday that the country's gross domestic product (GDP) posted 5.6 percent growth last year, lower than the 7.6 percent expansion in 2022.

He said the full-year 2023 GDP growth is the lowest since 2011, excluding the contraction posted during the pandemic.

Last year's GDP growth also fell short of the six to seven percent growth the government was aiming for.

In the fourth quarter of last year, the economy posted 5.6 percent growth, also slower than the 7.1 percent recorded in the same quarter of 2022 and the revised six percent growth in the third quarter of last year.

"While this growth is below our target of six to seven percent for this year, this keeps us in the position of being one of the best-performing economies in Asia," National Economic and Development Authority Secretary Arsenio Balisacan said.

Among those that have already released their fourth quarter GDP growth figures, he said the Philippines has the second fastest growth next to Vietnam (6.7 percent), and surpassed China (5.2 percent) and Malaysia (3.4 percent).

"More importantly, our full-year GDP for 2023 is now 8.6 percent higher than pre-pandemic levels," he said, adding that the fourth quarter economic performance validates the strategies under the country's overall development blueprint or the Philippine Development Plan 2023 to 2028.