DEPARTMENT of Finance (DoF) Secretary Benjamin Diokno reassured the public that the Philippine economy is on a steady path to recovery and expansion, as evidenced by the gross domestic product (GDP) growth of 7.4 percent across the board in the second quarter of 2022.
In a statement issued by the Finance department, Diokno attributed the economy's “strong growth” to improved labor conditions, greater mobility and government support for the economy in the second quarter.
“Our growth figure of 7.4 percent of GDP sits comfortably at the higher end of our target band for the year. This is an impressive achievement, more so with the ongoing challenges of rising inflation worldwide and an uncertain global political economy,” said Diokno.
According to the DoF, the second quarter's strong economic performance fell within the Development Budget Coordination Committee's (DBCC) 6.5- to 7.5-percent GDP growth target for 2022.
The Philippine Statistics Authority reported that the services sector experienced the biggest increase at 9.1 percent, followed by industry at 6.3 percent and agriculture, forestry, and fisheries at 0.2 percent.
Diokno emphasized that household spending (8.6-percent growth rate) and gross capital creation (20.5-percent growth rate) also increased, strongly supporting the economy.
Real GDP growth for the first half of the year averaged 7.8 percent, above the DBCC objective, he said.
He also stressed that given the positive outlook for the economy, the DBCC growth targets for the year remain achievable.
“In order to achieve the lower bound of the growth forecast of 6.5 percent, the Philippine economy has to grow by only 5.2 percent in the second half of the year. To achieve the upper bound of 7.5 percent, the economy has to grow by 7.6 percent,” said Diokno.
Diokno said the economic performance of the nation in the second quarter of this year confirms that it is on a stable route to recovery and rapid expansion in the future.
“Moving forward, we will continue the ongoing infrastructure program, maintain macroeconomic stability and take advantage of the recently approved amendments to the Public Service Act, Foreign Investments Act and the Retail Trade Liberalization Act to foster investment-led recovery,” he said.