Philippine Standard time

Monitoring the Philippine Economy Fourth Quarter Report for 2022

The Philippine economy grew 7.2 percent, featuring robust growth despite facing domestic challenges. Fourth quarter growth reflected a more optimistic consumer sentiment as the economy continued to open up. Economic growth in Q4 2022 was 7.2 percent year-on-year and 17.1 percent quarter-on-quarter (q-o-q), showing the Philippines’ consistent effort to create a positive growth outlook for the economy (see Table 1). Year-on-year growth exceeded the median analyst forecast of 6.8 percent despite accelerating inflation and growing food security issues. Revenge spending continues to drive consumption on the demand side while service sector growth remains headstrong on the supply side amid stunted growth in the industry and agriculture sectors. Meanwhile, an expected reversal to a balance-of-payments surplus at December-end was fueled by remittances and tourism receipts during the holiday season. The trade deficit narrowed as well in Q4-end, with prospects for trade looking bright with the Senate’s eventual ratification of the Regional Comprehensive Economic Partnership in the next quarter. Looking ahead, the central bank and national government must continue to determine the effective mix of policies and straighten out its priorities to support the economy's recovery. 


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