PH output grows 7.6% to P22.02T | Inquirer Business

PH output grows 7.6% to P22.02T

/ 05:44 AM January 27, 2023
Arsenio Balisacan

Arsenio Balisacan

The Philippines’ gross domestic product (GDP) grew by 7.6 percent in 2022, the fastest since the 8.8 percent posted in 1976, or 46 years ago, National Statistician Dennis Mapa announced on Thursday.

At current prices, Mapa said the economy is now worth P22.02 trillion, up from P19.41 trillion in 2021 with inflation-adjusted production reaching P19.95 trillion at 2018 prices.


The national production data, which excludes remittances from abroad, surpassed the expectations of government and private economists, both locally and abroad.

The preliminary figure for real GDP growth in 2022 surpassed the government’s own target range of 6.5 percent to 7.5 percent.


Biggest contributor

It also surpassed the forecasts of S&P Global Ratings (7.1 percent), World Bank (7.2 percent), Asean+3 Macroeconomic Research Office (7.3 percent), Moody’s Investors Service (7.3 percent) and Asian Development Bank (7.4 percent).

Mapa said household consumption and expenditures were the biggest contributor to the 2022 growth rate, with 6.1 percentage points.

The industries that contributed the most to the annual growth were wholesale and retail trade; repair of motor vehicles and motorcycles; manufacturing; and construction.

“There was so much pent-up demand… and that significantly improved economic activities,” said Socioeconomic Planning Secretary Arsenio Balisacan, who was appointed last June.

Among emerging Asian economies that have released last-quarter GDP data, Balisacan said the Philippines grew the fastest at 7.2 percent, followed by Vietnam at 5.9 percent and China at 2.9 percent.

“Clearly, if not for the high inflation and elevated prices during this period, growth could have been higher,” he added.

Easing tariffs

For 2022, inflation stood at 5.8 percent, above the bank’s target, and even reached 8.1 percent in December, the fastest in 14 years.


Economists believe that inflation peaked in December and expected the rise in prices to slow down over the rest of 2023.

Still, Balisacan, who also leads the National Economic and Development Authority, said that the government will continue to ease tariffs to fight inflation.

“We will continue to support consumers and affected sectors through the extension of reduced tariffs on various products, facilitation of an accessible food supply chain, reduction of transport and logistics costs, and other measures to cushion the impacts of inflation on the purchasing power of households,” Balisacan said.

GDP growth, he added, may slow down to 6 to 7 percent in 2023 because of an expected global economic slowdown, “but this target is still a very respectable growth, if we achieve it, considering the lower outlook for other countries.”


Philippines posted above-target GDP growth of 7.6% in 2022

U.S. economy grows strongly in fourth quarter; weekly jobless claims fall

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Asian development bank, Business, Dennis Mapa, expenditures, Gross Domestic Product, NEDA, Remittances, S&P Global Ratings, World Bank
For feedback, complaints, or inquiries, contact us.
Your subscription could not be saved. Please try again.
Your subscription has been successful.

Curated business news

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2023 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.