Despite a temporary slowdown in its growth momentum during the second quarter of 2023, the Philippines continues to be one of the swiftest-growing economies in Asia, according to economist Michael Ricafort, Chief Economist of Rizal Commercial Banking Corp. (RCBC). Speaking at a weekly forum in Quezon City, Ricafort attributed this resilience to the complete economic reopening that followed the lifting of the nationwide state of public health emergency in July due to COVID-19.
“As the economy has fully reopened, there are no more restrictions, especially since July when the COVID state of public health emergency was lifted. It’s been more than two months now,” he stated.
While there may have been a slight downward adjustment in growth targets, moving from around 6 percent to 5 percent, the Philippine economy remains one of the region’s fastest-growing. The International Monetary Fund reported a growth slowdown to 4.3 percent in the second quarter but projects a rebound to 5.3 percent by year-end and anticipates a 6 percent growth rate in 2024.
Ricafort highlighted that all sectors, including tourism, are showing signs of revival, leading to increased job opportunities. He noted that the current employment rate in the Philippines is among the best in the past 17 to 18 years.
“In perspective, we now have more job opportunities. The unemployment rate is low because the economy has reopened, resulting in high employment,” he emphasized.
According to data from the Philippine Statistics Authority (PSA), the number of employed Filipinos reached an estimated 48.07 million, surpassing the reported figures of 44.63 million in July and 47.87 million the previous year. The employment rate was recorded at an impressive 95.6 percent.
The PSA also reported a decrease in the number of unemployed Filipinos, with figures dropping to 2.21 million in August this year, compared to 2.68 million in the same month in 2022 and 2.27 million in July this year.
Ricafort underscored the role of school reopenings in revitalizing businesses, especially micro, small, and medium enterprises. Regarding higher inflation recorded in September, he pointed out that the continuous increase in rice prices is a significant contributor to the upward trend in basic goods prices.
