2023-06-21-世界银行-菲律宾经济更新_2023年6月_确保清洁能源的未来（英）_70页_5mb

In the first quarter of 2023, the Philippines economy expanded by 6.4% year-on-year, fueled by robust domestic demand and steady remittances. Growth was supported by the services sector, while external demand was tempered by subdued global conditions.

Domestic demand remained strong despite high inflation, with headline inflation averaging 7.9% in the first four months of 2023. Core inflation indicated underlying price pressures, leading to the Bangko Sentral ng Pilipinas (BSP) raising its policy rate by 75 basis points to combat inflation.

The current account deficit widened to 4.4% of GDP in 2022, reversing a surplus from the previous year. However, the balance-of-payments position improved in the first quarter of 2023.

The fiscal deficit narrowed to 4.8% of GDP in Q1 2023, with public spending declining amid fiscal consolidation efforts. National government debt rose to 61.0% of GDP.

Labor market outcomes showed a slight increase in the labor force participation rate, decreased unemployment, but concerns about low-quality jobs and irregular employment patterns. Poverty reduction remains a priority, with proactive measures implemented to protect vulnerable households from high living costs.

For the medium term, growth is projected to average 5.9%, driven by resilient domestic demand and private investment. However, risks include global economic slowdown, sticky core inflation, and tighter financial conditions. Energy security and a transition to renewable energy are critical for sustainable development.