The Philippine Gross Domestic Product (GDP) expanded by 2.1 percent on a quarter-on-quarter basis in the fourth quarter of 2023. (Figure 1)

On a seasonally adjusted basis, the main contributors to the fourth quarter 2023 GDP growth were: Financial and insurance activities, 4.3 percent; Wholesale and retail trade; repair of motor vehicles and motorcycles, 2.1 percent; and Public administration and defense; compulsory social activities, 7.4 percent.

Among the three major industries, Services posted the fastest growth of 3.2 percent. This was followed by Industry with 0.4 percent. Meanwhile, Agriculture, forestry, and fishing (AFF) declined by 0.02 percent.

Figure 1. Gross Domestic Product, Quarter-on-Quarter Growth Rates, 

Q1 2020 to Q4 2023, At constant 2018 prices

Source: Philippine Statistics Authority

Out of the 16 industries, Accommodation and food service activities registered the fastest quarter-on-quarter growth with 12.1 percent. This was followed by Public administration and defense; compulsory social activities with 7.4 percent, Education with 4.7 percent, Transportation and storage with 4.292 percent, and Financial and insurance activities with 4.290 percent. Meanwhile, Agriculture, forestry, and fishing, Human health and social work activities, and Construction posted declines with 0.02 percent, 0.3 percent, and 0.7 percent, respectively, in the fourth quarter of 2023. (Figure 2)

Figure 2. GDP by Industry, Quarter-on-Quarter Growth Rates, 

Q4 2023, At constant 2018 prices

Source: Philippine Statistics Authority

In AFF, the main contributors to the 0.02 percent quarter-on-quarter decline were the following:  Palay, -0.9 percent; Fishing and aquaculture, -1.6 percent; and Corn, 
-2.5 percent. 

The major contributors to the 0.4 quarter-on-quarter growth of Industry in the fourth quarter of 2023 were the following: Manufacturing, 0.5 percent; Electricity, steam, water and waste management, 1.9 percent; and Mining and quarrying, 3.6 percent. Meanwhile, only Construction posted a decline of 0.7 percent.

The top contributors to the 3.2 percent expansion of the Services were: Financial and insurance activities, 4.3 percent; Wholesale and retail trade; repair of motor vehicles and motorcycles, 2.1 percent; Public administration and defense; compulsory social activities, 7.4 percent; Accommodation and food service activities, 12.1 percent; and Education, 4.7 percent. On the other hand, the only negative contributor was Human health and social work activities which posted a decline of 0.3 percent.

On the demand side, Gross capital formation recorded the fastest quarter-on-quarter growth in the fourth quarter of 2023 with 6.4 percent. This was followed by Household final consumption expenditure (HFCE) and Exports of goods and services which grew quarter-on-quarter by 2.8 percent and 0.6 percent, respectively. Meanwhile, Imports of goods and services and Government final consumption expenditure declined by 3.2 percent and 3.6 percent, respectively in the fourth quarter of 2023. (Figure 3)

Figure 3. GDP by Expenditure Item, Quarter-on-Quarter Growth Rates, 

Q4 2023, At constant 2018 prices

Source: Philippine Statistics Authority

The top contributors to the quarter-on-quarter increase of HFCE were the following: Restaurants and hotels, 15.0 percent; Miscellaneous goods and services, 4.8 percent; and Food and non-alcoholic beverages, 0.8 percent. 

Gross fixed capital formation posted a 4.2 percent quarter-on-quarter growth which was attributed to the increases of Durable equipment, Construction, Breeding stocks and orchard development, and Intellectual property products with 13.4 percent, 1.2 percent, 0.7 percent, and 1.4 percent, respectively. 

Total exports expanded quarter-on-quarter by 0.6 percent in the fourth quarter of 2023. The growth in Total exports reflected the quarter-on-quarter increase of Exports of services with 7.1 percent. Meanwhile, Exports of goods posted a decline of 4.9 percent.

Furthermore, Total imports posted a quarter-on-quarter decrease of 3.2 percent. The decline was mainly due to the contraction of Imports of goods with 4.2 percent. On the other hand, Imports of services posted a growth of 0.1 percent.

The Gross National Income posted a quarter-on-quarter growth of 2.8 percent in the fourth quarter of 2023. (Figure 4) 

Relatedly, Net Primary Income also increased quarter-on-quarter by 8.2 percent. 

Figure 4. Gross National Income, Quarter-on-Quarter Growth Rates, 

Q1 2020 to Q4 2023, At constant 2018 prices

Source: Philippine Statistics Authority