Philippines' GDP grows 4.3 pct in Q2

The Philippine economy expanded 4.3 percent in the second quarter year-on-year, bringing the real gross domestic product (GDP) growth for the first semester to 5.3 percent, the Philippine Statistics Authority (PSA) said on Thursday.

PSA head Dennis Mapa told a news conference that the wholesale and retail trade, repair of motor vehicles and motorcycles, financial and insurance activities, and transportation and storage fueled the second quarter growth.

National Economic and Development Authority Secretary Arsenio Balisacan said the "moderate economic expansion" in the second quarter growth was fueled by increases in tourism-related spending and commercial investments but was tempered by high commodity prices, the lagged effects of interest rate hikes, the contraction in government spending and slower global economic growth.

To achieve the government target growth rate of 6 to 7 percent this year, he said the Philippines' GDP needs to grow at least 6.6 percent in the second half of 2023.

The Philippine economy expanded 6.4 percent in the first quarter of 2023.

The Asian Development Bank (ADB) forecasts the Philippine GDP to grow 6 percent in 2023 and 6.2 percent in 2024.