The Philippine Statistics Authority (PSA) said Thursday it upgraded the gross domestic product (GDP) growth to 5.7 percent from an initial estimate of 5.6 percent, following the adjustment in fourth-quarter performance.
It revised the fourth-quarter GDP growth to 5.3 percent from the previous 5.2 percent, resulting in full-year changes.
“The PSA revises the GDP estimates based on an approved revision policy [PSA Board Resolution No. 1, Series of 2017-053], which is consistent with international standard practices on national accounts revisions,” the PSA said.
It will release the first-quarter GDP growth on May 8, 2025.
Despite the slight adjustment, the 2024 growth still fell below the Development Budget Coordination Committee’s (DBCC) growth target of 6.0 to 6.5 percent. However, it was faster than the 5.5-percent expansion in 2023.
Department of Finance Secretary Ralph Recto said the Philippine economy remains relatively resilient amid global trade shifts, with the government leveraging the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act to attract more investors to locate in the country.
“The Philippine economy is primarily driven by domestic demand rather than exports. This makes us relatively resilient against trade wars. However, as with all countries, we are not spared from the impact of the expected decline in international trade and possible slowdown of global growth due to supply chain disruptions, higher interest rates, and higher inflation,” said Recto.
“Nevertheless, the CREATE MORE Act will strengthen our ability to attract investors looking to expand or relocate to the Philippines, given the relatively lower tariffs imposed on our exports to the United States. We are also actively pursuing more free trade agreements with our global partners,” he said.
Recto said compared to its ASEAN neighbors, Philippine exports to the US would be subjected to a lower tariff of 17 percent. The US imposed higher tariffs on Vietnam (46 percent), Thailand (36 percent), Indonesia (32 percent), Malaysia (24 percent) and Cambodia (49 percent).
He said the Philippine government sees opportunities arising from global trade development.
Recto said the Philippines could be a hub for global value chains, particularly in industries like electronics, textiles, food and automobiles.
With the country’s global comparative advantage in coconut oil, the country is also well-positioned to expand its market share in the US for coconut-based products, including desiccated coconut and copra meal/cake, he said.
As major competitors like China, Bangladesh, Vietnam, Mexico, and India face higher tariffs, Philippine garment exports are also at an advantage of expanding its US market share, the DOF said.
Recto said to diversify export markets, the Philippine government continues to actively pursue new and expanded free trade agreements with economies like the United Arab Emirates (UAE), the European Union (EU), Chile and Canada.