Phl economy ‘still relatively strong’ – NEDA

Despite surging consumer prices, the country's economic performance in the third quarter is still relatively strong, an official of the National Economic and Development Authority said Friday.

During the Laging Handa press briefing, NEDA Undersecretary Rosemarie Edillon said statistics on the Philippine economy attest to the country's growth momentum.

The Philippine Statistics Authority mentioned that the country's gross domestic product grew 7.6 percent in the third quarter, faster than the upwardly adjusted 7.5 percent GDP growth in the second quarter of 2022.

The economy also grew by 2.9 percent, representing the country's "solid posture" against current domestic and external risks.

Edillion also assured that the government could still attain the 6.5 to 7.5 GDP growth rate target for 2022.

"Given the latest GDP outturn, our economy needs to grow by 3.3 percent to 6.9 percent in the fourth quarter," she said in Pilipino.

GDP growth factors

Edillon attributed the third-quarter GDP figure to the relaxation of border restrictions, "more simplified" travel protocols, and the resumption of face-to-face classes, as these increased spending.

She added that "one would have expected higher economic performance" and claimed that third-quarter GDP growth would have been faster "if not for increases in consumer prices."

Nonetheless, NEDA continues to see high inflation caused by increased external risks and natural calamities such as typhoons as hindrances and headwinds for economic growth.

"We recognize that inflation is affecting the country. Moving forward, we need to lower the prices of basic commodities – especially food prices," said Edillon.

Edillon added that the government would continue to provide short-term, immediate-term, and medium-term solutions to tame inflation and protect Filipinos' purchasing power. These include cash transfers, fuel discounts, and other targeted assistance.

She added that the government is focusing on boosting domestic agricultural production to ensure that Filipino families have an adequate food supply.