[READOUT] As Q3 GDP slows to 2.1%, what are businesses seeing?

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Despite worsening economic figures, the country's biggest retailer and airline say demand is surprisingly resilient Over the years, The Nerve and Rappler have conducted investigations into how China and its supporters have used social media to spread disinformation #Decoded

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The latest Philippine economic numbers paint a grim picture, with inflation rising, unemployment worsening, and economic growth slowing to its weakest pace since 2009, outside the pandemic.

But just as these figures were released, Rappler had the chance to speak with executives from some of the country’s biggest businesses about how they’re digesting the slowdown. Their responses suggest a more uneven picture, with some industries holding up better than others.

That leaves the Marcos administration on track to miss its annual growth target for the fourth year in a row. Economic growth would need to soar to 6.3% in the final quarter just to hit the lower end of its already reduced 3.5% to 4.5% target — a feat even the country’s chief economist admitted would be “very, very challenging.”

Department of Economy, Planning, and Development Secretary Arsenio Balisacan also warned that businesses should not expect consumer spending to recover quickly.

“I don’t expect consumer spending to rebound strongly soon,” he told reporters on November 9, citing the lingering effects of inflation.

Household consumption grew just 2.4% in the third quarter. BPI lead economist Emilio Neri Jr. pointed out that spending actually rose 8.5% in nominal terms, suggesting much of that went toward covering higher prices rather than buying more goods and services.

Nevertheless, two leaders of the SM Group didn’t seem too concerned about the latest macroeconomic numbers.

SM Supermalls president Steven Tan said mall foot traffic was still stable, with food-and-beverage sales even growing by double digits in October. Shoppers were also spending more time in malls, possibly consolidating trips as fuel prices rise.

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