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Philippines
Thursday, February 20, 2025
26.3 C
Philippines
Thursday, February 20, 2025

PH economy grew 5.6%, missed 2024 government target

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The Philippines gross domestic product expanded 5.6 percent year-on-year in 2024, missing the government’s 6 percent to 6.5 percent target, but remained one of the region’s fastest-growing economies.

The Philippine Statistics Authority (PSA) said the GDP grew 5.2 percent in the fourth quarter of 2024, which brought the 2024 full-year GDP growth to 5.6 percent. The 2024 growth was slightly faster than the 5.5 percent expansion in 2023.

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“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.

Among the main contributors to the fourth-quarter growth were wholesale and retail trade; repair of motor vehicles and motorcycles, 5.5 percent; financial and insurance activities, 8.5 percent; and construction, 7.8 percent.

Data from the PSA showed that for the whole 2024, the industries that contributed the most to the annual growth were wholesale and retail trade; repair of motor vehicles and motorcycles, 5.6 percent; financial and insurance activities, 9.0 percent; and construction, 10.3 percent.

Meanwhile, the gross national income (GNI) grew 6.2 percent year-on-year in the fourth quarter of 2024. This brought the full-year 2024 growth to 7.6 percent. Net primary income from the rest of the world rose 14.1 percent in the fourth quarter of 2024, which resulted in a full-year growth of 26.1 percent.

“To achieve resilient economic growth, we need to diversify our sources of growth. For inclusive quality employment, we must encourage more investments in sectors that require workers with higher-level skills and further develop an agile workforce. To keep food inflation low and stable, we need to anticipate potential shocks and continue to employ multi-pronged approaches,” said Edillon.

Edillon said for 2025, the government wants to regain its growth momentum, driven by strategic investments and initiatives designed to strengthen resilience and lay the foundation for long-term, inclusive growth.

“Infrastructure development remains a crucial driver of economic recovery and long-term growth. By the end of 2024, seven infrastructure flagship projects [IFPs] have been completed, with eleven more expected to be finished in 2025. It is essential to collaborate with LGUs to ensure the expedited completion of these projects and that these new infrastructures effectively promote growth within their respective area,” Edillon said, adding that tourism would also play a key role in driving 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.

“New tourism products, such as those under experiential tourism, are also being developed. Investments in digital and physical tourism infrastructure will improve accessibility, particularly in emerging destinations, and allow us to cater to a new group of tourists, the so-called digital nomads,” Edillon said.

She said price stability remains a priority to sustain domestic demand. “We will ensure a stable food supply and prevent unwarranted price increases through strategic trade policies, timely release and distribution of production and post-production support, and proactive measures against hoarding,” Edillon said.

“To further support households, we will strengthen the implementation of key social protection programs, such as the Ayuda Para sa Kapos ang Kita Program [AKAP] and the expansion of the Pantawid Pamilyang Pilipino Program [4Ps]. This will include the utilization of digital technologies such as the National ID and enhancing guidelines to minimize leakages by integrating monitoring and evaluation mechanisms, ensuring that the most vulnerable receive adequate support and we achieve maximum impact with scarce resources,” Edillon said.

“These coordinated efforts are part of a broader mission to reduce poverty and foster inclusive growth. By 2028, the government aims to reduce poverty incidence to single-digit, ensuring that far fewer Filipinos experience hunger, and more are resilient to natural and manmade shocks. With a strong labor market, stable inflation, and sound fiscal management, the Philippine economy is on track to sustain its progress toward these goals,” she said.

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