1-7-2023 (MANILA) The Philippine economy is experiencing a resurgence and returning to a trajectory of high growth, driven by a strong labor market performance and a decline in inflation, according to Secretary Arsenio Balisacan of the National Economic and Development Authority (NEDA).
Ferdinand Romualdez Marcos celebrated his first year in office as the 17th President of the Philippines on Friday, marking a significant milestone in his administration since his inauguration on June 30, 2022.
Balisacan highlighted the robust growth of the country’s gross domestic product (GDP) during the Marcos administration, with output expanding by 7.7 percent in the third quarter of 2022, 7.1 percent in the fourth quarter of 2022, and 6.4 percent in the first quarter of 2023. The average growth rate for the full year of 2022 stood at 7.6 percent, surpassing the government’s target range of 6.5 to 7.5 percent. Additionally, real GDP per capita exceeded pre-pandemic levels in the fourth quarter of 2022, indicating a positive recovery.
The labor market has also shown significant improvement, with the unemployment rate dropping to 4.5 percent in April 2023, down from 5.7 percent in April 2022. Similarly, the underemployment rate decreased to 12.9 percent from 14 percent during the same period, indicating better job quality and opportunities.
Inflation has been on a steady decline, starting from a peak of 8.7 percent in January and reaching 6.1 percent in May. The central bank anticipates inflation to return to the target range of 2 to 4 percent by the fourth quarter of 2023.
Balisacan expressed optimism about the future, stating that these positive indicators paint a promising picture of a sustained recovery for 2023.
Despite the challenges posed by the pandemic, Marcos assumed office under unique economic circumstances. Balisacan acknowledged the socioeconomic setbacks, including higher national debt, fiscal deficits, learning losses, business closures, and soaring unemployment rates. However, the Marcos administration has actively conveyed its commitment to international investors and trading partners, demonstrating that the Philippines is open for business. The government aims to diversify the country’s sources of growth by expanding markets, enhancing productivity, and adding value to its products and services.
On the eve of his first-year anniversary as President, Marcos acknowledged that there is still much work to be done. He emphasized the need to address decades-long neglect in the agriculture sector and bolster the economy in the face of persistent inflation threats.
“We are not done. There are many, many things that we still need to do,” remarked Marcos, underscoring his administration’s ongoing dedication to fulfilling its objectives.
