The country’s gross domestic product expanded 7.6 percent year-on-year in the third quarter, faster than the 7-percent growth a year ago despite the domestic and external headwinds such as rising interest rates, elevated inflation and geopolitical tensions in Eastern Europe, the Philippine Statistics Authority said Thursday.
It was also higher than the revised 7.5-percent growth in the second quarter, as the three major segments of the economy rose amid the continuous easing of mobility restrictions. Growth hit 8.2 percent in the first quarter.
This brought the average economic growth in the first three quarters to 7.7 percent, above the government’s 2022 target range of 6.5 percent to 7.5 percent, and faster than 4.9 percent in the same period last year.
Economic Planning Secretary Arsenio Balisacan said the third-quarter performance put the Philippines second in the region, behind Vietnam’s 13.7-percent growth and ahead of Indonesia’s 5.7 percent.
“This economic performance largely benefitted from the further easing of mobility, including the resumption of face-to-face classes, which boosted consumption among Filipinos. The relaxation of border restrictions and more simplified travel protocols also supported the growth of local tourism and other sectors severely affected by the pandemic, leading to economic expansion in the third quarter,” he said.
National statistician and civil registrar general Dennis Mapa said in an online briefing the economy gained strength from the agriculture, industry and services sectors. He said agriculture and forestry grew by 2.2 percent, industry by 5.8 percent and services by 9.1 percent.
Household final consumption expenditure grew by 8.0 percent in the third quarter, while gross capital formation went up 21.7 percent.
“This turnout signifies that Filipino families are close to returning to pre-pandemic life, as more people visit restaurants and hotels and engage in recreational activities within the country,” said Balisacan.
The gross national income also jumped 10.5 percent in the third quarter, on the back of a 94.6-percent increase in net primary income from the rest of the world.
Balisacan said that on a seasonally adjusted quarter-on-quarter basis, the economy grew by 2.9 percent, signifying its solid posture against domestic and external risks.
“With this, we are on track to achieving the government’s growth target of 6.5 percent to 7.5 percent for 2022. Given the latest GDP outturn, our economy needs to grow by 3.3 to 6.9 percent in the fourth quarter,” he said.
The economy grew by 5.7 percent in 2021, a turnaround from the 9.6-percent contraction in 2020 at the height of the pandemic.
“I am pleased to announce that the Philippine economy maintains its solid position and positive outlook as the government continues to shepherd it toward full recovery and inclusive economic transformation,” Balisacan said.
“In this time of heightened global uncertainty and elevated consumer prices, this high-growth performance in the third quarter bodes well for our efforts to ensure quality job creation and poverty reduction to achieve inclusive growth. What we want is prosperity for all Filipinos,” he said.