MANILA, Philippines (Updated 2, 2:16 p.m.) — The Philippine economy is back on track in the third quarter of 2023 after a slower second quarter, according to the Philippine Statistics Authority (PSA).

Gross Domestic Product (GDP), which measures the total value of goods and services produced in a specific time, grew by 5.9% from July to September 2023, PSA Chief Claire Dennis Mapa said on Thursday.

It is an improvement from the 4.3% growth in the previous quarter — the slowest in nine quarters since the country emerged from a pandemic-induced recession in mid-2021.

According to PSA, the main contributors to the third quarter growth were wholesale and retail trade, vehicle repair, financial and insurance activities, and construction. These sectors posted impressive year-on-year growth rates.

Socioeconomic Planning Secretary Arsenio Balisacan said the government would have to grow by 7.2% in the final quarter of the year to meet the annual target of 6% to 7% for 2023

He added that the Philippines outperformed other major emerging Asian economies. Third-quarter 2023 GDP growth rates for Vietnam, Indonesia China, and Malaysia stood at 5.3%, 4.9%, 4.9%, and 3.3%, respectively.

“We commend the national government agencies and local government units for responding to the economic team’s call to implement catch-up expenditure plans,” Balisacan said in a statement.

“These actions addressed the contraction in government spending in the previous quarter. We hope to maintain this momentum for the remainder of the year and the years to come,” he added.

The third quarter performance brought the year-to-date GDP growth rate for January to September 2023 to 5.5%.