MANILA: The Philippine economy ended 2022 with the fastest growth in over four decades underpinned by a robust final quarter, but analysts and policymakers warn that a global slowdown and soaring inflation will make for a difficult year ahead.
Manila’s fourth quarter forecast-beating annual growth of 7.2 percent reported by the statistics agency compared with the 6.5 percent pace expected in a Reuters poll, and brought full-year expansion to 7.6 percent, the fastest since 1976 and above the government’s target of 6.5 to 7.5 percent.
Economic Planning Secretary Arsenio Balisacan attributed the stellar fourth-quarter performance to strong domestic demand, rise in jobs, and “revenge” spending following the lifting of pandemic curbs and full reopening in the last three months of the year.
“We are confident that we will remain in our high growth trajectory,” Baliscan told a media briefing on Thursday.
He said China’s reopening will be a boon for the Philippine economy, while protecting the purchasing power of Filipinos and ensuring food security would remain priorities for the government as the public grapples with high inflation.
On a quarter-on-quarter basis, GDP growth came in at 2.4 percent in October-December, compared with expectations for a 1.5 percent rise and the previous quarter’s upwardly revised 3.3 percent expansion. Balisacan said the government was sticking with its 6.0-7.0 percent growth target for 2023, but that is not without risks, with the global economy expected to slow further this year roiled by the Ukraine conflict while rising inflation could lead to further policy tightening.
Like the rest of the world, the Philippines is battling red-hot inflation, currently running at 14-year highs, which if not tamed could crimp domestic consumption, a major driver of growth.
Government data showed household spending slowed for a third straight quarter in the October-December period, growing at an annual rate of 7.0 percent from 8.0 percent in the third quarter.
“We expect a difficult year ahead for the Philippines,” Capital Economics said in a note, citing the impact of high inflation and tighter monetary policy on domestic spending. For 2023, Capital Economics is expecting growth of 5.5 percent.
Elevated inflation, plus the need to maintain interest rate differentials between the US and the Philippines, have forced the Bangko Sentral ng Pilipinas (BSP) to embark on an aggressive tightening cycle last year.
Its governor hinted on Thursday of further policy actions depending on what the US Federal Reserve does.
Speaking at an economic briefing in London, Bangko Sentral ng Pilipinas Governor Felipe Medalla reiterated the central bank stood ready to act to bring inflation, which hit 8.1 percent in December, back to its 2 percent-4 percent target this year.
Philippines 2022 GDP growth quickest in over 4 decades, but outlook challenging
https://arab.news/gr79e
Philippines 2022 GDP growth quickest in over 4 decades, but outlook challenging
- Pent-up demand, reopening, spur growth — planning secretary
- Says China reopening to provide boost
Saudi inflation cools as annual rate slows to 1.9% in November: GASTAT
RIYADH: Saudi Arabia’s annual inflation rate slowed to 1.9 percent in November, easing from 2.2 percent in the previous two months, as softer price pressures outside housing offset continued increases in rents.
Consumer prices rose 1.9 percent from a year earlier, data from the General Authority for Statistics showed, marking the first move below the 2 percent level since mid-2025, after inflation peaked at 2.3 percent in August.
The data showed that housing-related costs remained the largest contributor to inflation, driven by a 5.4 percent rise in actual rents, particularly for primary residences.
Saudi Arabia’s inflation trajectory aligns with projections made by the International Monetary Fund in October, which said the Kingdom is expected to maintain an annual inflation rate of 2.1 percent in 2025 and 2 percent in 2026.
In its latest report, GASTAT stated: “The CPI in the Kingdom recorded an annual increase of 1.9 percent in November 2025 compared to the same month of the previous year.”
It added: “This increase was mainly driven by a rise in housing, water, electricity, gas, and other fuel prices by 4.3 percent, food and beverage prices by 1.3 percent, and transport prices by 1.5 percent.”
According to the report, prices of fresh, chilled, or frozen meat increased by 1.6 percent in November compared to the same month last year. Expenses for personal care, social protection, and other goods and services also rose by 6.6 percent year on year in November.
Prices in the insurance and financial services division increased by 5.1 percent, driven by an 8.4 percent rise in insurance costs.
The costs of entertainment, sports, and culture rose by 1.3 percent, primarily propelled by a 2.1 percent increase in holiday package prices.
Conversely, prices of furniture, household equipment, and routine household maintenance declined by 0.3 percent, due to a 3.3 percent decrease in furniture, furnishings, and carpet prices.
Similarly, expenses for restaurants and accommodation services fell by 0.5 percent year on year in November.
Monthly inflation
According to GASTAT, the Consumer Price Index rose marginally by 0.1 percent in November compared to October.
This increase was influenced by a 0.3 percent rise in housing, water, electricity, gas, and other fuels.
Prices for transportation, as well as personal care, social protection, and other goods and services, also increased by 0.3 percent month on month.
“The prices of the food and beverage division decreased by 0.2 percent, the health division by 0.2 percent, the entertainment, sports and culture division by 0.1 percent, and the insurance and financial services division by 0.1 percent,” said GASTAT.
Prices of furniture and home appliances, routine household maintenance, clothing and footwear, and education services remained stable in November.
Wholesale Price Index
In a separate report, GASTAT said Saudi Arabia’s Wholesale Price Index increased by 2.3 percent in November compared to the same month in 2024.
The increase was mainly driven by a 4.3 percent rise in prices of other transportable goods, excluding metal products, machinery, and equipment, and a 2.3 percent increase in agricultural and fishery products.
“The prices of food products, beverages, tobacco, and textiles also rose by 0.5 percent driven by a 0.9 percent rise in prices of grain mills, starch, and other food products, as well as a 1.1 percent rise in prices of meat, fish, fruit, vegetables, oils, and fats,” said GASTAT.
Conversely, prices of ores and minerals fell by 0.8 percent due to a decline of the same magnitude in stone and sand prices.
On a monthly basis, the WPI declined by 0.3 percent in November, reflecting a 0.8 percent drop in other transportable goods, excluding metal products, machinery, and equipment.
Compared to October, agricultural and fishery product prices fell by 0.4 percent, driven by a 0.9 percent decline in agricultural products and a 1.3 percent drop in fish and other fishing products.
Average prices
In another report, GASTAT highlighted notable changes in average prices of goods and services across Saudi Arabia in November.
Lebanese peaches recorded the largest month-on-month increase at 5 percent, followed by local corchorus at 4.7 percent, hotel accommodation at 4.6 percent, Pakistani mandarins at 4.3 percent, and white cabbage at 4 percent.
Conversely, several items posted sharp price declines.
Local zucchini recorded the steepest fall at 15.3 percent, followed by local tomatoes at 11.9 percent and Indian pomegranates at 8.5 percent.
