Phl economy posts 3rd highest growth in region in Q4 2024

The Philippine economy recorded a 5.2 percent growth in the fourth quarter of 2024, making it the third-fastest growing economy in the region despite facing challenges like geopolitical tensions and a series of typhoons.

This growth brought the country’s overall economic expansion for the year to 5.6 percent.

National Economic and Development Authority (NEDA) Undersecretary Rosemarie Edillon acknowledged that the country fell short of its target growth rate of 6.0 to 6.5 percent.

However, it outperformed Malaysia (4.8 percent) and trailed only Vietnam (7.5 percent) and China (5.4 percent) in terms of regional economic growth.

“The challenges that impacted the economy were numerous, including extreme weather events, geopolitical tensions, and global economic slowdowns. The performance of different sectors was crucial in mitigating these challenges and ensuring that we remained resilient,” Edillon stated in a briefing.

Economic growth in 2024 was primarily driven by the industry and services sectors, which grew by 5.6 percent and 6.7 percent, respectively.

However, the manufacturing sector faced setbacks due to reduced global demand and ongoing geopolitical issues. Agriculture, forestry, and fishing saw a 1.6 percent decline, partly due to the six typhoons that struck the country in the final quarter, which disrupted crop production and fisheries.

Household consumption showed a positive trend, expanding by 4.8 percent, although spending on travel and recreation was not enough to offset declines in other areas.

Government spending grew by 7.2 percent, while gross capital formation increased by 7.5 percent. Exports of goods and services rose by 3.4 percent, and imports saw a slight increase of 4.3 percent.

Looking ahead, Edillon emphasized the need to build economic resilience and adapt to changing global trends. She called for diversifying sources of growth, particularly in sectors requiring higher-skilled labor.

Strengthening investments in agriculture, tourism, and information technology is also key to sustaining the country’s growth momentum.

The government plans to prioritize infrastructure development, streamline business processes, and enter new free trade agreements to boost competitiveness.

Furthermore, measures to support the agriculture sector, including irrigation investments and the fast-tracking of the National Rice Program, are expected to bolster long-term growth.