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Khomfie Manalo

Gov't revises Q1 GDP growth upward to 5.8%

The Marcos administration's economic planners have revised the country's first-quarter gross domestic product (GDP) growth rate to 5.8% from the previous estimate of 5.7% at constant 2018 prices.


The Philippine Statistics Authority (PSA) said the major contributors to the upward revision were Financial and insurance activities, which increased from 10.0% to 10.3%; wholesale and retail trade; motor vehicle and motorcycle repair, which increased from 6.4% to 6.6%; and Electricity, steam, water, and waste management, which increased from 6.3% to 6.9%.


"Upward revisions were also observed in the first quarter of 2024 in the annual growth rates of the Gross National Income from 9.7% to 9.8%, and the Net Primary Income from the Rest of the World from 57.0% to 57.6%," the PSA said.


According to the PSA, the revised GDP estimates were approved by the PSA Board, which is consistent with international standard practices on national account revisions.


Meanwhile, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said the country's latest GDP per capita has surpassed the pre-pandemic level by more than 10%, thanks to government programs supporting economic growth.


As part of the Department of Budget Coordination Committee (DBCC), Balisacan shared with lawmakers during Monday's budget briefing in the House Appropriations Committee the government's economic gains over the past years to recover from the coronavirus disease 2019 (COVID-19) pandemic. He cited that the GDP per capita in the first quarter of 2024 grew by 4.8% and had already surpassed the pre-pandemic level by 10%.


World Bank data showed that in 2019 the Philippines' GDP per capita stood at $3,413.8. When Covid-19 hit in 2020, it declined to $3,224.4. The GDP per capita, or the average income per person in the country, is now over $3,700.


Moreover, the NEDA chief said the government could attract investments to create quality jobs, as underemployment in May 2024 settled at 9.9%, a record-low since 2005. Poverty incidence also declined to 15.5% in 2023 from 18.1% in 2021, which means 2.45 million Filipinos were lifted from poverty while the number of food-poor individuals declined by 1.71 million.


"To boost growth next year, the Marcos administration will continue to implement the strategies we have set in the Philippine Development Plan (PDP) 2023-2028, guided by the lessons we have identified in the Philippine Development Report 2023," Balisacan said.

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