MANILA, Philippines — The economy slightly grew at a faster rate in the first quarter of 2024 than initially reported but was still below the official target, according to the Philippine Statistics Authority (PSA).
In a statement, the PSA said the gross domestic product (GDP) growth in the first three months was revised upward to 5.8 percent from the preliminary estimate of 5.7 percent.
The revised figure, however, remained below the six to seven percent growth target set by the government.
Financial and insurance activities emerged as one of the major contributors to the upward revision, as the sector’s growth was upgraded to 10.3 percent from 10 percent.
Wholesale and retail trade also contributed to the GDP growth revision, as the sector’s growth was adjusted to 6.6 percent from 6.4 percent.
Another factor driving the faster economic performance was the electricity, steam, water and waste management with a faster growth of 6.9 percent from 6.3 percent.
The PSA said the country saw upward adjustments in the gross national income to 9.8 percent from 9.7 percent.
The net primary income from the rest of the world was also adjusted to 57.6 percent from 57 percent.
The revisions to the first-quarter GDP estimates were based on “an approved revision policy that is consistent with international standard practices on national account revisions,” the PSA noted.
Economists interviewed by The STAR said that this positive development signaled a thriving economic landscape in the country.
“This is a good sign amid the continued improvement of many businesses and industries after the final lifting of the COVID state of public health emergency for more than a year already,” said Michael Ricafort, chief economist at Rizal Commercial Banking Corp.
Security Bank chief economist Robert Dan Roces said these “positive indicators suggest a robust economic environment.”
The National Economic and Development Authority (NEDA) earlier said the first-quarter performance reinforced the Philippines’ status as a leading force among Asia’s emerging economies.
The country’s economy expanded faster than Vietnam’s 5.66 percent, China’s 5.3 percent, Indonesia’s 5.1 percent and Malaysia’s 3.9 percent.
“From the start of the year, we have been experiencing several shocks, the major ones being the long period of the heatwave, and related to that, the El Niño and geopolitical tensions. Our first-quarter economic performance is a testament to our people and industries’ resilience,” NEDA Secretary Arsenio Balisacan said.
The PSA is set to report the second quarter economic performance today.
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