The Philippine Statistics Authority (PSA) said today that gross domestic product (GDP) grew 8.3% year-on-year in 1Q2022 and better than 1Q21, when GDP contracted.
Better-than-expected GDP growth could help Ferdinand Marcos Jr, the new president of the Philippines, as he faces several economic challenges including rising inflation and a weakening global economy.
Economists want Marcos Jr. to fight inflation first. The new president of the Philippines is expected to pursue a policy of infrastructure expansion to create more jobs and boost the economy.
The Philippines’ political planner stated that the country’s economy would need to grow by at least 6% over the next 5-6 years to reduce the debt burden.
The Bank of the Philippines (BSP) has scheduled a monetary policy meeting for May 19 and announced its interest rate decision. Currently, the BSP is keeping the policy rate at 2.0% to support the economic recovery rather than to reduce price pressures.