Philippine Standard time

Monitoring the Philippine Economy Second Quarter Report for 2022

The Philippine economy continued its positive growth trend at 7.4 percent in second quarter 2022 after registering a remarkable growth rate of 12.1 percent the previous year.


The Philippine economy sustained its positive growth, showing a strong performance despite considerable challenges. The economy grew 7.4 percent in second quarter 2022, slower than the 12.1 percent growth posted in the same quarter last year and the 8.2 percent growth recorded in the previous quarter. Despite this quarter’s growth being the slowest since the third quarter of 2021, the economy still continued the trend of successive expansions this quarter. National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan stated that although it is slightly off the median growth forecast of 7.5 percent, the Philippines still ranked second among emerging economies in Asia that have released their second quarter results. Continued growth in private consumption, outstanding growth in investments, and recovered growth in government expenditures drove growth to be positive, although a widened trade deficit constrained GDP growth. On the supply-side, the services sector continued to be a major source of employment and a major contributor to GDP. As the country continues to recover from the pandemic, it still faces challenges such as a persistently increasing inflation rate and an even weaker peso amid tighter monetary policies globally and locally, continued geopolitical tensions, and increased prices for vital commodities. With the Bangko Sentral ng Pilipinas (BSP) already raising the benchmark policy rate by 0.50 percent as of the second quarter’s end, ongoing inflationary pressures highlight the necessity of quick monetary action to stabilize inflation expectations. As a whole, the country can sustain and even attain higher growth in succeeding quarters, but it must establish strategies to weather external and internal challenges as well as have enough room to manage its monetary policy.


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