PH economy posts higher 5.9% GDP growth in Q3 2023, strongest among major Asian economies

The Philippine economy has posted a higher gross domestic product (GDP) growth of 5.9 percent in the third quarter (Q3) of 2023, the strongest among major economies in Asia.

The Q3 GDP performance was faster than the 4.3 percent growth in Q2 2023 and exceeded the expectations of private analysts with a median forecast of 4.9 percent.

The Philippines’ GDP growth outturn in Q3 also outpaced major economies in Asia that have released their data for the period such as Vietnam (5.3 percent), Indonesia and China (4.9 percent), Malaysia (3.3), and Singapore (0.7 percent).

“This strong performance is buoyed by robust domestic demand despite high inflation, improved government spending, and a better global growth outlook,” Finance Secretary Benjamin E. Diokno said.

Year-to-date, the country’s GDP growth stood at 5.5 percent, exceeding that of China (5.2 percent), Indonesia (5.1 percent), Vietnam (4.2 percent), Malaysia (3.9 percent), and Singapore (0.5 percent).

“We are confident that the country will post a full-year economic growth that is close to the low-end of the DBCC’s [Development Budget Coordination Committee] growth assumptions of 6.0 to 7.0 percent for 2023 as inflation eases, labor market conditions remain strong, and consumer spending increases, particularly during the holiday season,” Secretary Diokno said.

The Philippine economy has to grow by at least 7.2 percent in Q4 to achieve the low end of the DBCC’s growth assumption of 6.0 to 7.0 percent for 2023.

Domestic demand in Q3 2023 grew by 3.9 percent from 8.9 percent in the same period last year driven by the continuous increase of household consumption and the rebound in government spending at 5.0 percent and 6.7 percent, respectively.

All major production sectors posted positive year-on-year (YoY) growths in Q3 and the first three quarters of 2023, reflecting continued broad-based economic expansion.

The services and industry sectors expanded by 6.8 percent and 5.5 percent, respectively in Q3 2023, although both are slower than respective growth rates of 9.3 percent and 5.8 percent a year ago.

Agriculture grew moderately by 0.9 percent, from 2.1 percent growth in Q3 2022.

The major contributors to Q3 2023 GDP