PH’s full-year 2023 GDP growth strongest among major Asian economies

The Philippines finished strong in 2023 with a full-year gross domestic product (GDP) growth rate of 5.6 percent, outpacing major economies in Asia, such as China (5.2 percent), Vietnam (5.0 percent), and Malaysia (3.8 percent) based on the latest available data.

GDP refers to the total value of all goods and services produced within a country over a given period. It is a key indicator used by economists and policymakers to assess the size and health of a country’s economy and compare the economic performance of different countries.

The Philippines’ GDP outturn in 2023 did not just outperform its neighbors but also exceeded or matched the forecasts of multilateral organizations and private analysts, such as the International Monetary Fund (IMF), the ASEAN+3 Macroeconomic Research Office (AMRO), and the World Bank (WB).

In the fourth quarter of 2023, the Philippine economy grew by 5.6 percent due to stronger domestic demand despite an elevated inflation rate and external challenges.

The strength in domestic demand was evident in higher household consumption and investments, particularly public infrastructure showing that the Build Better More Program is reaping benefits in terms of its high multiplier effect on the economy.

The robust household consumption reflects strong spending, supported by a healthy job market, consistent inflows of remittances from overseas Filipinos, and a surge in demand for goods and services.

Faster private consumption in Q4 2023 was driven by restaurants, hotels, and transport, indicating that people are going out more and have more money to enjoy non-essential activities.

“The strong economic performance in 2023 is a clear testament to the government’s efforts in creating an environment conducive to enhancing the purchasing power of Filipinos. We are firm in our commitment to ensure that our economic progress is felt in the day-to-day lives of our people,” Finance Secretary Ralph G. Recto said.

Meanwhile, the full-year GDP resulted in a preliminary debt-to-GDP ratio of 60.2 percent in 2023, an improvement from the 60.9 percent recorded in 2022 and better than the 61.2 percent Medium-Term Fiscal Framework (MTFF) target.

The debt-to-GDP ratio