2nd Quarter PH GDP: Unexpectedly slower

The Philippine economy expanded at a more muted pace of 4.3% year-on-year in the second quarter of 2023 versus last quarter’s 6.4% growth. This quarter’s GDP print came out significantly lower than the 6.0% median analyst forecast from the BusinessWorld’s poll and Metrobank Research’s forecast of 6.1%, driven by the contraction in government and investment spending, and moderating consumption spending.

Given this, we maintain our full year GDP forecast for 2023 at 6.0%, albeit with downward bias, as we continue to monitor data points within the economy.

Please see our report below for more updates on the latest GDP release and our outlook.