Business and Economy
PH economy grows 7.4% in Q2 despite headwinds
National Statistician Dennis Mapa said the country’s GDP stood at PHP9.6 trillion at constant prices in the first semester of 2022, higher compared to the 2019 first semester of PHP9.49 trillion. (File Photo: charlesdeluvio/Unsplash)
MANILA – The country’s gross domestic product (GDP) expanded by 7.4 percent in the second quarter of 2022, as the economy recovered strongly with loosened pandemic restrictions boosting economic activities.
In a press briefing Tuesday, Socioeconomic Planning Secretary Arsenio Balisacan said while the second-quarter economic growth was slightly lower than the median forecast of 7.5 percent for this year, the Philippines was the second best performing nation among the region’s major emerging economies that have released their reports.
Balisacan said the country was next to Vietnam’s 7.7 percent, but faster than Indonesia’s 5.4 percent and China’s 0.4 percent.
The GDP growth rate for the January to March period has been revised to 8.2 percent. It averaged 7.8 percent in the first half of the year. The economy posted a 5.9-percent pre-pandemic growth in 2019.
“Timely changes in Covid-related policies, such as easing alert levels, removing tourism restrictions, and accelerated vaccine rollout, helped increase economic activities. As of June 2022, around 85 percent of the economy is already under Alert Level 1. That these changes were implemented during the recently-held national and local elections demonstrate that, indeed, ‘living with the virus’ is possible,” Balisacan said.
He said the full reopening of the economy will generate more income-earning opportunities.
“But the purchasing power of that income may be eroded by the high inflation, primarily resulting from increased fuel and food costs. Consequently, the government is focused on ensuring food security and reducing transport, logistics, and energy costs,” he said.
Balisacan, chief of the National Economic and Development Authority (NEDA), remained optimistic that the economy can grow within revised expected 6.5 to 7.5 percent this year despite headwinds, particularly inflation, citing some positive developments like the decline in energy prices in the world market.
“Nearly 70 percent of our economy is really consumption, and services account for 60 percent of the economy so you are likely to have growth and the rest of the economy for the remainder of the year largely coming from the domestic front,” he added.
Balisacan said the economy needs to expand 5.3 percent in the second semester to achieve the 6.5-percent growth, which is “very highly achievable”.
The GDP, on the other hand, needs to accelerate 7.2 percent in July to December to hit the upper-end of this year’s growth target, he said.
National Statistician Dennis Mapa said the country’s GDP stood at PHP9.6 trillion at constant prices in the first semester of 2022, higher compared to the 2019 first semester of PHP9.49 trillion.
At current prices, GDP current value reached PHP10.32 trillion in the first semester this year from PHP9.29 trillion during the same period in 2019, he said.
“So the first semester of 2022 both in the current prices and constant prices are already higher compared to the pre-pandemic level,” he added.
Meanwhile, Balisacan said all sectors on the production side expanded in the second quarter, driven by the services and industry sectors at 9.1 percent and 6.3 percent, respectively.
He cited the recovery of the services sectors that have been hit hard by the coronavirus disease 2019 (Covid-19)-induced restrictions.
“Transport, accommodation, food service, and other services have shown continued yet slow signs of recovery to their pre-pandemic levels,” Balisacan said.
He said the increase in foot traffic in retail and recreation centers, given improvements in mobility and easing of border restrictions, supported the faster growth in wholesale and retail trade.
Balisacan said the agriculture sector was still weak at 0.2 percent growth as the sector remains vulnerable to natural calamities and rising input costs.
“Given the agriculture sector’s weak performance, the government will provide support through lower input costs, access to new farming technologies, financial assistance to farmers, and strengthening the agricultural value chain,” he added. (With a report from Wilnard Bacelonia/PNA)
RENE ROSE ORIOL
August 10, 2022 at 12:21 AM
Tlaga ba?Nag grow ng 7.4 percent ang Ekonomiya natin?? Bkit ndi nman ramdam? Mataas parin ang mga bilihin at maraming walang trabaho,maraming Pilipino pa rin ang nagugutom.ang mga lubos na naapektuhan ng Pandemya ay di parin nakakabangon. Marami parin negosyo ang nagsasara.Sa larangan ng agrikultura marami magsasaka ang nalugi at pinamimigay na lang ang mga naani nilang produkto at hinahayaan na lang mabulok ito dahil sa mahal ng gasolina at sobra baba ng presyo sa merkado. Dapat kumilos agad ang gobyerno upang masolusyunan ang problema ng taong bayan.Hulihin ang mga opisyal ng DOA na tumatanggap ng suhol galing sa mga Smugler.ang mga mayayamang Negosyante lang ang nakikinabang sa paglago ng Ekonomiya. Ang mga Mahihirap ay nagdurusa at naghihirap pa rin.
Jessabell Advincula
August 10, 2022 at 3:58 PM
The growth of our country’s economy only shows that we are slowly going back to the normal wherein everything is going back to normal. Pandemic greatly affect our economy because of those protocols that must be followed to prevent the spread of virus. Business are forced to close momentarily. Leading to workers to stop earning money. But as the plans to stop the spread of virus shows more positive impacts, our economy is one of the beneficiary of it. Leading to opening of business and helping the people to start working again. This news only shows that we are ready to be back on the new normal of life. This shows how Filipinos can adapt to the changes that happen in the world and we are all ready for it.
Sonny Ramirez
August 11, 2022 at 6:25 AM
We are now experiencing the effect/s of former Pres. Du30’s Infrastructure development “Build, Build Build” program. That despite the Pandemic, Ukraine war, Inflation and the oil crisis, we were able to sustain and continue our growth.
Still excellent. We are on the road to progress and developments. Go, Philippines, go. We are the highest in terms of GDP growth among Asean nations.
Reynaldo Leo
August 11, 2022 at 11:02 AM
It is not noticeable but I’ve seen that a lot of people experience it in a negative way, what does economic growth will be if we still facing high inflation, all the goods are in high value, the gas even it is rollback it still high compare before. Yes, a lot has happen around the world, but it is the Philippines only lacking for what we do, lacking of self-compliance and trust which still we are on the list of top corrupted country in the world. What is growth when we can’t even trust our government for the fulfilment of our hard own money. I hope that something and I wish that our government will care for us not for their own sake.
Gia Lou
August 11, 2022 at 11:16 AM
The expansion of the economy in our nation is the only indication that things are gradually returning to normal. Because of the strict protocols that must be followed to stop the spread of the virus, pandemics have a significant impact on our economy. Businesses are forced to temporarily close. resulting in workers’ loss of income. Our economy is one of the beneficiaries of the plans to stop the spread of the virus, though, as they show more positive effects. resulting in the start of a business and assisting in getting people back to work.
May-May
August 11, 2022 at 11:43 AM
Ang paglago ng ekonomiya ng ating bansa ay nagpapakita lamang na unti-unti tayong bumabalik sa normal kung saan babalik sa normal ang lahat. Malaki ang epekto ng pandemic sa ating ekonomiya dahil sa mga protocol na dapat sundin para maiwasan ang pagkalat ng virus. Ang negosyo ay napipilitang magsara sandali.