Gen Z and young millennials are driving economic growth with their spending, the country's finance chief said as the new normal allows for a return to restaurant dining and shopping in brick-and-mortar stores.
Domestic consumption led by the youth remains to be the top contributor to economic growth, Finance Sec. Benjamin Diokno said over the weekend. Gross domestic product expanded by 8.3% in the first quarter of 2022, thanks to the easing of COVID-19 restrictions which allowed for higher consumer spending.
"The young population, they consume a lot. [Domestic consumption is] actually the major mover or source of growth, plus yung investment,” said Secretary Diokno.
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More young people joined the labor force in May based on data from the Philippine Statistics Authority, with youth employment increasing to 87.9%, higher than the 87.7% in April 2022.
Of the estimated 20.14 million Filipinos aged 15-24 years old, some 7.3 million are part of the labor force. This translates to a youth labor force participation rate of 36.2%, the finance department said.
"Ang biggest source of growth ng Pilipino ay consumption kasi we have a very young population, and they are mostly, they are consumers," Diokno said.
"If you are aging, yung demand mo hindi na masyado. Hindi ka na bumibili ng mga gadgets, hindi ka na nagtatayo ng bahay, hindi ka na bumibili ng bagong damit," he added.
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