In light of the country's slower growth in the second quarter, Finance Secretary Benjamin E. Diokno is urging the public to remain optimistic, emphasizing that this is a common trend seen at the outset of every new administration.

At the Philippine Economic Briefing in Laoag on Monday, Aug. 14, Diokno, the government’s chief economic manager, noted that a decrease in economic expansion has historically been observed during the first year of the past three administrations.

“Don't lose hearts, okay?” Diokno said. “Historically, the Philippine economy goes up during the last year of every administration, and then the first year of the new administration, it goes down,” he said.

Based on the Philippine economic historical data, the country’s gross domestic product (GDP) indeed registered slower growth in the first full year of the newly elected president.

Though former President Gloria Macapaga-Arroyo’s term in 2001 was not a full year, having only 11 months, the country's economy encountered a slowdown from four percent in 2020 to three percent.

Similarly, during the initial stages of his term, the late President Benigno Aquino III witnessed a decline in GDP growth rate, slowing from 7.3 percent in 2010 to 3.9 percent the following year.

The pace of economic expansion also weakened during the first full year of former President Rodrigo Duterte's administration, dropping from 7.1 percent to 6.9 percent in 2017.

However, with the exception of former President Duterte, both the Arroyo and Aquino III administrations experienced an acceleration in GDP during the second year of their respective terms.

"It happened in GMA’s term [Arroyo], PNoy’s term [Aquino III], Duterte’s term, it went down a little bit,” Diokno said.

The Marcos administration expects the economy to grow between six percent and seven percent in 2023, a decrease from the 7.6 percent growth in the previous year.

Furthermore, Diokno said the government has developed strategies within the Medium-Term Fiscal Framework (MTFF) to stimulate growth and facilitate the country's economic transformation.

“This is the first time that we have designed that program, and it's the first time that both houses of Congress endorsed and approved that same program,” Diokno said.

"As I said, we are on track,” Diokno said. “This country's economic situation is sound, and it will continue to be sound.”

The economy recorded a modest growth rate of 4.3 percent in the second quarter, short of both the projected six percent growth rate by private analysts and the 6.4 percent GDP recorded in the first quarter of 2023.

The country’s growth was pegged at 5.3 percent in the first semester of 2023.

In order to meet the full-year goal target of 6.0 percent to 7.0 percent, the country's GDP would need to grow by at least 6.6 percent in the second half.

On Sunday, Diokno said an aggressive catch plan will be implemented for infrastructure projects, and government-owned and controlled corporations will be encouraged to respond more swiftly. 

He said spending priorities include roads, bridges, airports, seaports, power infrastructure, water systems, irrigation projects, telecommunications facilities, digitalization initiatives, school buildings, housing, and various other areas.

Moreover, Diokno said they will harness the financial resources of local government units to bolster spending and drive economic growth in the remaining months of the year.