Philippines Economy Update January 2023

• The Philippine Gross Domestic Product (GDP) posted growth of 7.6 per cent in the third quarter of 2022, exceeding the median analyst forecast of 6.3 per cent. This puts the Philippines firmly in second place in terms of highest growth in the region and on track to achieving the government’s growth target of 6.5 to 7.5 per cent in 2022.
• The main drivers for growth in the third quarter were wholesale and retail trade, repair of motor vehicles and motorcycles, financial and insurance activities, and construction.
• Major economic sectors posted positive growth in the third quarter, including agriculture, forestry and fishing at 2.2 per cent, industry at 7.7 per cent, and services at 9.1 per cent.  
• Household consumption and investment helped drive growth on the demand side as more Filipinos returned to regular activities after the pandemic.
• The relaxation of border restrictions and simplified travel protocols helped provide a boost to tourism and other related sectors. From February to November 2022, the Philippines recorded 2,219,634 tourist arrivals.
• The unemployment rate declined and is now at 5 per cent, the lowest since January 2020. This equates to a decrease of 1.8 million unemployed individuals.
• The Philippine government aims to reinvigorate job creation and reduce poverty rates to single-digit levels. Similar to many other countries in the world today, the Philippines is currently dealing with higher levels of inflation but the government is taking the necessary steps to address this.
• President Ferdinand Marcos, Jr. has also identified food security as a top priority of his administration. The government will boost domestic agricultural production and sustain agricultural productivity and resilience through climate-adaptive technologies.
• The Philippines remains committed to supporting businesses and creating a more enabling regulatory and investment environment through the full implementation of landmark reforms such as the amendments to the Public Service Act, Foreign Investments Act, Retail Trade Liberalization Act, and the Corporate Recovery and Tax Incentives for Enterprises or the CREATE law.

Source: Philippine Statistics Authority; National Economic and Development Authority