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The Philippine economy grew 5.6% in 2024, missing the government target of 6-6.5%
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The latest economic performance was slightly faster than the 5.5% recorded in 2023 though
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Fourth quarter growth was at 5.23%
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Major industry contributors to the annual growth were wholesale and retail trade; repair of motor vehicles and motorcycles; financial and insurance activities; and construction
The Philippine economy grew 5.6% in 2024, missing the government target of 6%-6.5% but higher than the 5.5% growth in 2023.
The government attributed the missed goal to extreme weather events, geopolitical tensions, and subdued global demand, similar to challenges encountered in 2023.
“This suggests that these conditions may represent the new normal. While some challenges affect the entire economy, others exert pressure on specific sectors,” National Economic and Development Authority undersecretary Rosemarie Edillon said in a statement.
The 5.23% GDP growth in the fourth quarter of last year was also slightly lower than the revised 5.24% growth posted in the third quarter of 2024 and the 5.5% increment in the fourth quarter of 2023, according to the Philippine Statistics Authority (PSA).
PSA said the major industry contributors to the annual growth were wholesale and retail trade; repair of motor vehicles and motorcycles; financial and insurance activities; and construction.
Among the major economic sectors, industry and services posted growths of 5.6% and 6.7%, respectively, while agriculture, forestry, and fishery (AFF) posted a decline of 1.6%.
Edillon said the agriculture sector in particular faced several setbacks, particularly between late October and mid-November, when six typhoons struck the country in succession. The AFF sector, which contributes around 8% to GDP and provides livelihood for about one-fourth of the workforce, faced disruptions in crop production, livestock, and fisheries, further compounding its vulnerabilities.
On the demand side, all major expenditure items posted growths as household final consumption expenditure, which grew by 4.8%; government final consumption expenditure, 7.2%; gross capital formation, 7.5%; exports of goods and services, 3.4%; and imports of goods and services, 4.3%.
Looking ahead, Edillon said the government wants to “regain our growth momentum driven by strategic investments and initiatives designed to strengthen resilience and lay the foundation for long-term, inclusive growth.”
The growth assumptions for 2025 to 2028 is 6% to 8%, reflecting the anticipated impact of structural reforms and evolving domestic and global uncertainties.
