Philippine GDP grows 6.4% in Q1 2023, beating estimates

The Philippine economy started the year with slower growth, although it outperformed expectations due to favorable base effects and resilient consumer spending. The country's gross domestic product (GDP) grew by 6.4% year-on-year in the first quarter, slower than the previous quarter's growth of 7.1% but higher than the consensus estimate. Consumer spending remained robust, supporting the economy throughout 2022 despite high inflation. However, household consumption growth slowed to 6.6% in the first quarter compared to the preceding three months. The GDP reading benefited from favorable base effects and solid consumer spending amid ongoing mobility restrictions. Analysts expect growth to moderate in the coming months due to rate hikes impacting bank lending and investment, as well as concerns about debt levels slowing government spending.