The Philippine economy grew 7.6 percent in third quarter 2022, exceeding growth forecasts as it continues its path to economic recovery.
The Philippine economy grew year-on-year but slowed compared to the previous quarter. The country experienced an expansion during third quarter 2022, continuing the trend of positive year-onyear growth exhibited since the economy started to recover in second quarter 2021. Economic growth accelerated this quarter at 7.6 percent on a year-on-year basis, but declined by 4.6 percent when compared to the economy’s impressive GDP level last quarter. Economic recovery persisted with the employment of more Filipinos, the expansion of local tourism, and the easing of border restrictions. Despite accelerating inflation, household consumption growth remained steadfast, driving demandside growth along with gross fixed capital formation. The services sector, which remained as the sector with the highest employment shares, contributed the most to growth as a sign of firm operations continuing and consumer demand increasing. Government interventions to put the Philippines on a high-growth path included targeted assistance, investment law reforms, and agricultural investments. With quarter-on-quarter growth slowing and inflation increasing, the central bank and national government must determine the effective mix of monetary and fiscal policies to control the country’s current problems, supporting its economic recovery in all sectors.