The Philippine economy “returns to its high-growth” trajectory, supported by a strong labour market performance and cooling inflation, Secretary of the National Economic and Development Authority (NEDA) Arsenio Balisacan has said.

Balisacan said the country has seen robust gross domestic product (GDP) growth, with output expanding by 7.7% in Q3 2022, 7.1% in Q4 2022, and 6.4% in the first quarter of this year.

The 2022 full-year growth average is at 7.6%, exceeding the government’s target of 6.5-7.5%, while real GDP per capita surpassed the pre-pandemic level in the fourth quarter of 2022, said Balisacan.

In the labour market, the unemployment rate fell to 4.5% in April 2023, down from 5.7% in April 2022, while the underemployment rate also fell to 12.9% from 14% in the same period, indicating improved quality of jobs.

Meanwhile, the inflation has steadily moderated, from “a peak of” 8.7% in January to 6.1% in May. The central bank has expected inflation to return to the 2 to 4% target by the fourth quarter of 2023.

Balisacan acknowledged that these indicators paint a promising picture of a sustained recovery for 2023.

According to the official, the COVID-19 pandemic had led to a number of socioeconomic setbacks, including the higher national debt, fiscal deficit, as well as social and economic scarring in terms of learning losses, business closures, and record levels of unemployment. However, the government is working to diversify the country’s sources of growth by expanding its markets, raising productivity, and enhancing the value added for its products and services./.

Source: Vietnam News Agency