By Komfie Manalo
An economist said that robust consumer spending and the recovery of various industries had pushed the domestic economy to grow faster in the second quarter of the year, with the gross domestic product (GDP) growing by 6% during the period.
Rizal Commercial Banking Corporation chief economist Michael Ricafort commented, "Faster consumer spending, which accounts for at least 70% of the economy, as many businesses and industries recover further with no more Covid restrictions for more than a year already or since June 22, 2023, especially those struck by the pandemic, going back or even exceeding [their] pre-pandemic levels."
He added that higher government spending also added to the growth.
According to Ricafort, the faster government spending, meanwhile, was led by the continued growth in infrastructure spending and preparations for the May 2025 midterm elections, as government agencies ramped up the implementation of projects or programs before the election ban.
Official second-quarter Philippine economic growth data will be released by the Philippine Statistics Authority next week.
In the first quarter of the year, the Philippine economy grew by 5.7%.
Ricafort said Philippine economic growth near or at 6 percent levels could be sustained in the following quarters due to favorable demographics and the continued recovery of some industries such as tourism.
He said growth drivers for 2024 and beyond include easing inflation and a possible reduction in interest rates, further recovery of the tourism sector, and continued growth in overseas Filipino remittances.
He said other growth drivers include the continued growth in business process outsourcing (BPO), which generated more than $35 billion in 2023 and is still expected to grow further to $39 billion in 2024 and even higher in the coming years.
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