The Philippine economy grew 5.6 percent in the fourth quarter of 2023, slower than 7.1 percent in the same period the previous year, according to the Philippine Statistics Authority (PSA).
The October-to-December performance brought the 2023 economic growth to 5.6 percent., lower than the government’s target range of six percent to seven percent, and slower than 7.6 percent registered in the fourth quarter of 2022.
“The main contributors to the fourth quarter 2023 annual growth were: financial and insurance activities, 11.8 percent; wholesale and retail trade; repair of motor vehicles and motorcycles, 5.2 percent; and construction, 8.5 percent,” PSA said on Wednesday, Jan. 31.
For the full year of 2023, the industries which contributed the most to the annual growth were: wholesale and retail trade; repair of motor vehicles and motorcycles, 5.5 percent; financial and insurance activities, 8.9 percent; and construction, 8.8 percent.
PSA said all major economic sectors, namely: agriculture, forestry, and fishing (AFF); industry; and services posted year-on-year growths in the fourth quarter of 2023 at 1.4 percent, 3.2 percent, and 7.4 percent, respectively.
For the full year of 2023, AFF, Industry, and Services also posted growths in 2023 at 1.2 percent, 3.6 percent, and 7.2 percent, respectively.
On the demand side, household final consumption expenditure (HFCE) grew year-on-year by 5.3 percent in the fourth quarter of 2023.
Government final consumption expenditure (GFCE) and exports of goods and services posted annual declines of 1.8 percent and 2.6 percent, respectively. For the whole 2023, HFCE grew by 5.6 percent; GFCE, 0.4 percent; gross capital formation, 5.4 percent; exports of goods and services, 1.3 percent; and imports of goods and services, 1.6 percent.
The Gross National Income (GNI) expanded by 11.1 percent in the fourth quarter of 2023, bringing the full-year 2023 growth to 10.5 percent.
Likewise, Net Primary Income (NPl) from the rest of the world grew year-on-year by 97.7 percent during the fourth quarter of 2023 and 96.6 percent for the annual 2023.