The Philippine Gross Domestic Product (GDP) experienced a downtrend, registering a 4.3% drop in the second quarter of 2023 from <a href="https://www.dzrh.com.ph/post/ph-economy-slower-at-6.4percent-in-q1" target="_blank" rel="noopener">6.4% in the first quarter</a> of this year.
<img style="display: block; margin-left: auto; margin-right: auto;" src="https://dzrh-bucket.s3.ap-southeast-1.amazonaws.com/featuredimage/blobid1691636734017" alt="" width="606" height="282" />
Figure 1. Gross Domestic Product (At Constant 2018 Prices) Year-on-Year Growth Rates (in percent) Q1 2018-2019 to Q2 2022-2023/Photo courtesy: PSA
The <a href="https://psa.gov.ph/content/gdp-expands-43-percent-second-quarter-2023" target="_blank" rel="noopener">latest report from the Philippines Statistics Authority</a> outlined the key factors behind the Q2 2023 decrease.&nbsp;
Wholesale and retail trade, along with the repair of motor vehicles and motorcycles, contributed 5.3%.&nbsp;Financial and insurance activities played a role with a 5.0% boost, while transportation and storage sectors surged by 17.3%.
In terms of major economic sectors, agriculture, forestry, fishing, industry, and services all displayed positive growths in Q2 2023, with 0.2%, 2.1%, and 6.0% respectively.
From the demand perspective, Household Final Consumption Expenditure (HFCE) showed a growth of 5.5% during the second quarter of 2023.&nbsp;
Notably, there were also increases in exports of goods and services by 4.1%, and imports of goods and services by 0.4%.&nbsp;
Meanwhile, Government Final Consumption Expenditure (GFCE) and Gross capital formation faced contractions of -7.1% and -0.04% respectively.
The Gross National Income (GNI) experienced an expansion of 8.6% in the second quarter of 2023.&nbsp;
"The Gross National Income (GNI) grew by 8.6% in the second quarter of 2023. Likewise, Net Primary Income (NPl) from the Rest of the World grew by 90.6% during the period," the statement read.
Meanwhile, the inflation rate in the country continued its <a href="https://www.dzrh.com.ph/post/inflation-rate-down-by-4.7percent-in-july" target="_blank" rel="noopener">downward trend</a>, easing to 4.7% in July from 5.4% in June 2023.
This marks the sixth consecutive month of deceleration in the overall inflation rate and represents the lowest rate since March 2022 when it stood at 4.0%.

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PSA: PH economy growth slows down to 4.3% in Q2 2023