Q3 GDP growth revised upward to 6 percent

MANILA, Philippines — The Philippine economy posted a slightly faster growth rate in the third quarter of 2023 than initially reported, according to the Philippine Statistics Authority (PSA).

“The year-on-year growth rate of the gross domestic product (GDP) for the third quarter of 2023 was revised upward to six percent from the preliminary estimate of 5.9 percent,” the PSA said in a statement yesterday.

Manufacturing was cited as one of the major contributors to the third quarter GDP growth revision as the sector’s growth rate was adjusted to 1.8 percent from 1.7 percent.

Financial and insurance activities also contributed to the GDP growth revision as the sector’s growth was revised to 9.6 percent from 9.5 percent.

Accommodation and food service activities was cited as another factor in the revised GDP growth, with the sector’s growth rate changed to 21 percent from 20 percent.

Meanwhile, the Net Primary Income (NPI) from the rest of the world, was revised downward to 111.6 percent from 112.5 percent.

Despite the changes to the GDP and NPI, the PSA said the growth rate of the gross national income in the third quarter of 2023 was maintained at 12.1 percent.

According to the PSA, the revisions to the GDP estimates are made “based on an approved revision policy that is consistent with international standard practices on national accounts revisions.”

For the first three quarters of 2023, the economy grew by 5.5 percent.

Economic Planning Secretary Arsenio Balisacan has said economic growth in the fourth quarter should be at 7.2 percent to meet at least the low end of the six to seven percent growth targeted by the government for 2023.

While the aim is to hit at least the lower end of the range of six to seven percent, he said: “I’ll be happy if we get so close to it.”

Economists expect full-year 2023 economic growth to have missed the government’s target due to lower consumption and exports growth.

The PSA will report the full-year 2023 and fourth quarter economic performance today (Jan.31).