The economic growth of the Philippines for the year 2024 has officially been declared by national authorities at 5.6%, according to a Philippine News Agency (PNA) news article (which itself emphasized 2024 4th quarter economic growth of 5.2%). By comparison, the national economy grew by 7.6% in 2022 and 5.6% in 2023.
To put things in perspective, posted below is an excerpt from the news article of the PNA. Some parts in boldface…
The Philippines was the third highest-growing economy in the region in the fourth quarter of last year despite the impacts of geopolitical tensions and the series of typhoons that hit the country.
Philippine economic growth settled at 5.2 percent in the fourth quarter of 2024, bringing the full-year economic growth to 5.6 percent.
“While this falls short of our target of 6.0 to 6.5 percent, we are positioned as the third fastest-growing economy in the region, trailing Vietnam (7.5 percent) and China (5.4 percent) but outpacing Malaysia (4.8 percent),” National Economic and Development Authority (NEDA) Undersecretary Rosemarie Edillon said in a briefing Thursday.
Edillon said the country faced numerous setbacks like extreme weather events, geopolitical tensions, and subdued global demand.
“While some challenges affect the entire economy, others exert pressure on specific sectors. Consequently, our economic performance in 2024 hinged on the impact of these factors on various sectors and whether we can mitigate the negative effects or enable a swift recovery,” said Edillon.
Last year, economic growth was mainly driven by the industry and services sectors.
National Statistician Dennis Mapa said that among the major economic sectors, industry and services grew by 5.6 percent and 6.7 percent, respectively, last year.
Growth in the manufacturing sector, however, was hampered by subdued global due to geopolitical tensions and the slow recovery of advanced economies. Agriculture, forestry, and fishing declined by 1.6 percent.
Edillon said the six typhoons that hit the country in the fourth quarter, caused disruptions in crop production, livestock, and fisheries. On the demand side, household final consumption expenditure expanded by 4.8 percent.
“During the fourth quarter, we had a succession of typhoons again in October until mid-November and this dampened the growth momentum and travel plans. Although we did see that there was increased spending on travel, transport, recreation and culture but still it was not enough to counter the slowdown in other expenditure items,” said Edillon.
Government final consumption expenditure, meanwhile, grew by 7.2 percent, while gross capital formation rose by 7.5 percent. Exports of goods and services went up by 3.4 percent, while imports of goods and services increased by 4.3 percent.
Building resilience – Edillon noted that the key to economic growth is to build resilience and ensure adaptability to changing preferences.
“To achieve resilient economic growth, we need to diversify our sources of growth,” she said.
Edillon cited the need to encourage more investments in sectors that require workers with higher-level skills.
To keep food inflation low and stable, Edillon said the government must anticipate potential shocks and continue to employ multi-pronged approaches.
“Looking ahead to 2025, we want to regain our growth momentum driven by strategic investments and initiatives designed to strengthen resilience and lay the foundation for long-term inclusive growth,” she said.
Edillon said the government will also ramp up efforts to further develop the country’s infrastructure and boost economic competitiveness by streamlining business processes.
According to Edillon, the government will also expand new free-trade agreements.
To support the recovery in the agriculture sector, Edillon said the government through the Department of Agriculture, will fast-track the implementation of the National Rice Program, invest in irrigation facilities, and fully utilize the increased provision for the Rice Competitiveess Enhancement Fund to improve farm productivity.
Edillon said tourism will also help boost economic growth.
“The government will explore easing visa requirements and actively participate in initiatives such as the proposed ASEAN common visa policy to enhance visitor inflows,” she said.
Edillon said the government will also strengthen the country’s talent pipeline through reskilling and upskilling programs to boost growth in the information technology and business process management (IT-BPM) sector.
Let me end this post by asking you readers: What is your reaction to this recent development? Were you surprised that the 2024 economic growth of the Philippines ended below 6%? What do you think will help the national economy grow by at least 6% this year?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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