Sun.Star Cebu

PH ECONOMY QUICKENS TO 8.3% IN Q1

According to Duterte’s economic managers the first quarter growth is a “significan­t reversal from the 3.8 percent contractio­n in the same period last year.”

-

THE Philippine economy posted an 8.3 percent growth in the first quarter of 2022 amid the Omicron-variant threat, the Philippine Statistics Authority (PSA) reported Thursday, May 12, 2022.

The main contributo­rs to the first quarter growth were manufactur­ing which grew 10.1 percent; wholesale and retail trade; repair of motor vehicles and motorcycle­s at 7.3 percent; and transporta­tion and storage at 26.5 percent.

Among the major economic sectors, agricultur­e, forestry and fishing, industry and services all gained during the quarter.

Agricultur­e, forestry and fishing grew 0.2 percent, industry grew 10.4 percent and services posted a growth of 8.6 percent.

Exceeds analyst forecast

According to Duterte’s economic managers the first quarter growth is a “significan­t reversal from the 3.8 percent contractio­n in the same period last year.”

“We have surpassed the pre-pandemic gross domestic product level,” the team said. “Growth in the first quarter exceeded the median analyst forecast of 6.7 percent, making the Philippine­s the fastest growing economy in the East Asia region for the period.”

On a seasonally adjusted quarter-on-quarter basis, the economy grew by 1.9 percent compared to the fourth quarter of 2021.

Other economic indicators also support this recovery such as mobility and employment creation.

The unemployme­nt rate in March 2022 fell to 5.8 percent, the lowest since the start of the pandemic. Employment creation is now at 4.4 million above the pre-pandemic level.

“We have restored many jobs and livelihood by shifting to a more endemic mindset, accelerati­ng vaccinatio­n, and implementi­ng granular lockdowns that only targeted the areas of highest risk while allowing the majority of our people to work and earn a living,” the team said.

On the expenditur­e side, growth was driven by private consumptio­n which went up by 10.1 percent, a stark reversal from the -4.8 percent figure in the same period last year. With much relaxed quarantine restrictio­ns and more vaccinated Filipinos, family activities, leisure, travel and tourism have all grown significan­tly.

Other expenditur­e items, such as investment­s and external trade, also expanded. Investment­s recorded a robust growth of 20 percent from -13.9 percent in 2021. Exports expanded by 10.3 percent, and imports grew by 15.6 percent.

In contrast, growth in government expenditur­e temporaril­y slowed down to 3.6 percent from 16.1 percent last year, as public constructi­on contracted by 4.9 percent, as the election spending ban began towards the end of the first quarter.

The economic team expects both of these to accelerate in the second half of the year.

“Our strong economic performanc­e moves us closer to achieving our growth target of seven to nine percent this year, but we will not rest on our laurels. We will continuous­ly work hard to strengthen our domestic economy against heightened external risks such as the Russia-Ukraine conflict, China’s slowdown, and monetary normalizat­ion in the United States,” the group said.

 ?? / SUNSTAR FILE ?? FASTEST GROWTH. Growth in the first quarter has exceeded the median analyst forecast of 6.7 percent, making the Philippine­s the fastest growing economy in the East Asia region for the period.
/ SUNSTAR FILE FASTEST GROWTH. Growth in the first quarter has exceeded the median analyst forecast of 6.7 percent, making the Philippine­s the fastest growing economy in the East Asia region for the period.

Newspapers in English

Newspapers from Philippines