Palace: Q2 GDP slowdown 'only temporary'

The Philippine Statistics Authority (PSA) reported that the country's Gross Domestic Product (GDP) growth in the second quarter (April-June) slowed to 2.3 percent year-on-year, down from 2.8 percent in the previous quarter. In response, Malacañang, the presidential palace, stated that this economic slowdown is "only temporary" and does not determine the country's long-term direction. The PSA report cited a slowdown in household consumption as one of the factors contributing to the lower growth rate. However, the government expressed optimism that increased infrastructure investments and the recovery of the services sector will boost future economic growth. The Philippine economy has been on a recovery path from the pandemic, showing robust growth thus far, driven particularly by remittances from overseas workers and the services industry. The current slowdown is also attributed to global inflationary pressures and rising interest rates, making future policy management a key focus. The government has pledged to continue implementing measures for price stability and job creation to achieve sustainable economic growth. Furthermore, it plans to improve the investment climate to attract foreign capital.