Moody’s Analytics said Monday the Philippine economy likely grew 5.7 percent year-on-year in the third quarter of 2024.
“We expect economic growth in the Philippines to slow to 5.7 percent year-over-year in the September quarter from 6.3 percent in the June [second] quarter,” the research unit of Moody’s Corp. said.
“Government spending and private investment will drive growth, while private consumption will be muted because recent rate cuts need time to filter through the economy,” it said.
Moody’s Analytics said exports could lose some shine due to soft external demand for Philippine goods and a slower increase in international tourist arrivals.
The Philippine Statistics Authority (PSA) will release the third-quarter GDP figures on Nov. 7, 2024.
Moody’s Ratings in August 2024 affirmed the Philippines’ investment-grade credit rating of “Baa2” with a “stable” outlook.
The credit rating agency cited as key factors the country’s reforms to liberalize the economy, fiscal consolidation efforts and robust macroeconomic fundamentals.
Moody’s said “the passage of reforms over the past several years to liberalize the Philippine economy will support medium-term growth potential by supporting a business-friendly environment and attracting foreign investments.”
Moody’s said it expects foreign direct investment inflows to continue rising in 2024 and 2025, driven by strong investor interest in the energy, manufacturing and information and communications sectors.
It also noted the Marcos administration’s goal of increasing infrastructure investments at 5.0 percent of GDP annually under the “Build Better More” initiative, which will reduce the country’s infrastructure gap.
