The economy gets a glow up

The third quarter glow up of the PH economy. (Photo: Dawn)

Things were heating up the last time we talked about money matters here, and I can understand that you can only hear so much of another variation of “we have no money” until you can’t take it anymore. So, here’s some good news. Maybe. Hopefully.

Third time's the charm

After months and months of rising prices of consumer goods, declining peso value, and panicking about filling up the gas tanks, the Philippine economy hit a buzzer beater as the third quarter is painting a brighter picture to cap off 2022. 

According to the Philippine Statistics Authority (PSA), the country’s economy grew by 7.6% in the third quarter of the year. This is higher than the 7% from the same period back in 2021 and the 7.5% of the second quarter this year. 

A lot of what led to this growth came from construction, real estate, and manufacturing sectors which grew by 19.5%, 4.4%, and 2.2% respectively. It was also revealed by the PSA that around 1.78 million Filipinos were able to find jobs since September 2021. This means that the average unemployment rate of 2022 is close to pre-pandemic levels of 5.1%. 

“This is a good sign. The economy is trying very hard to grow. We just have to be able to tolerate the shocks that are coming from abroad. But otherwise, the economy is moving in the right direction,” President Marcos Jr. said in a press statement released by the Office of the Press Secretary (OPS) last Wednesday.

Economic Planning Secretary Arsenio Balisacan was quick to add a caveat, "While these developments are remarkable, I want to underscore that our nation still faces a considerable burden in the form of high inflation."

Either way, it’s important to relish the good when it’s there. God knows how bad it has been for some of us already. All you need to do is just scroll through the rest of The Tea that does, actually, suck.

Meaty wins

While mask requirements have been relegated to optional status in the country, the signs of the times really point to a semblance of back to normal. 

“This turnout signifies that Filipino families are close to returning to pre-pandemic life, as more people visit restaurants and hotels, and engage in recreational activities within the country,” Balisacan added. 

People are starting to spend again making up for the lost time and experiences that were robbed from us in the past two and half years. If things continue to go our way, the unemployment rate in the country is expected to remain low until 2026, according to the Fitch Group’s forecast, at least. 

Agriculture is one of the Philippines’ biggest assets. Despite recent natural calamities and super typhoons, the farming sector was able to successfully rebound. Output grew by 1.8% compared to the 2.6% decline it received around the same time last year. 

Opening up economic activities further may have been a premature decision for some earlier this year but it has proven to be a great decision so far. “The year-on-year growth may have been attributed to the lower base denominator effects a year ago in view of some pockets of lockdowns last year, while there are no more lockdowns so far this year,” said Rizal Commercial Banking Corp. chief economist Michael Ricafort.

For the meat lovers out there, poultry, which makes up around 15.2% of the country’s agricultural production, has increased by 6.2%. Crops, which make up a chunky 53.9%, also rose by 1.8% after suffering consecutive declines for the first two quarters of the year. 

Unfortunately, fisheries are still struggling to stay afloat with a 4.2% decline. It’s been rough waters for them for the past nine months. All I can say is, just keep swimming.

Check and balance

More or less, there’s about two more months left in 2022 and the holiday rush is upon us. It’s genuinely refreshing to hear (and write) about how our economy is inching its way to a much better state. 

But, there’s still a long way to go. Fears of recession are still looming and folks on the western side of the world are still trying to see just how much we have to worry about. 

For now, we can all afford to smile just a little bit. Thinking about the amount of Christmas gifts I may have to buy for friends and family, a smile is probably all I can give this year. And if any of you are reading this, sorry, that’s the best I can do.