Philippines posts 7.6% GDP growth in Q3

The Philippines’ gross domestic product (GDP) grew at a faster-than-expected pace of 7.6% in the third quarter of 2022, according to the Philippine Statistics Authority (PSA).
Streets in Manila, Phillippines. (Photo: AFP)
Streets in Manila, Phillippines. (Photo: AFP)

The figure is much higher than the 6.1% median estimate of analysts polled by Bloomberg and BusinessWorld. It is also slightly higher than the 7.5% posted in the second quarter but lower than the 8.5% recorded in the first quarter.

Expansion in the third quarter puts the Philippines second in growth in Southeast Asian, behind Vietnam’s 13.67%.

The PSA attributed GDP growth in the third quarter to the service sector while household consumption and investment remained the main drivers although inflation has reduced families' incomes.

President Ferdinand Marcos Jr’s economic team is aiming for GDP to expand between 6.5% and 7.5% this year.

Socioeconomic Planning Secretary Arsenio Balisacan said in a recent press briefing that the Philippine government is likely to hit its GDP target and growth in the fourth quarter must be between 3.3% and 6.9%. However, he also warned that the country still faces a heavy burden from high inflation stemming from external risks and the aftermath of recent typhoons.