PH 2024 economy grows 5.6%, below govt target but up from 5.5% in 2023

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Philippine gross domestic product (GDP) grew 5.6 percent in 2024, official data show, missing the government’s growth assumption of 6 to 6.5 percent for the full year, despite a fourth-quarter sequential improvement.

The Philippine Statistics Authority (PSA) told a news conference this morning that last year’s economic performance was slightly faster than the 2023 GDP growth rate of 5.5 percent.

For the fourth quarter of 2024 alone, the economy expanded by 5.2 percent, virtually maintaining the pace of growth in the third quarter but slower than the 5.5 percent increase in the same period a year earlier.

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Data released by the Statistics Authority showed the value of goods and services produced by the country for full-year 2024 reached P22.23 trillion, compared with P21.05 trillion in 2023.  The amounts were valued at constant 2018 prices.

At current prices, GDP 2024 amounted to P26.43 trillion, up from P24.31 trillion in the comparable period.

In the fourth quarter, GDP reached P6.19 trillion, up from P5.88 trillion in the comparable yr-earlier quarter.

Rosemarie Edillon, undersecretary of the National Economic and Development Authority, said during the same briefing that while the 2024 economic performance fell short of the government’s target, the Philippines is positioned as the third fastest-growing economy in the region, trailing Vietnam’s 7.5 percent and China’s 5.4 percent but outpacing Malaysia’s 4.8 percent.

“In 2024, we faced numerous setbacks like extreme weather events, geopolitical tensions, and subdued global demand, similar to the challenges we 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,” Edillon said.

“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. In a word, it is about resiliency. Therefore, beyond aiming for higher numbers, our focus is on building resilience,” she added.

Statistics Undersecretary and National Statistician Claire Dennis Mapa said that among the major economic sectors, industry and services posted year-on-year growths in the fourth quarter of 2024 with 4.4 percent and 6.7 percent, respectively. Meanwhile, the agriculture, forestry, and fishing (AFF) sector posted a year-on-year decline of 1.8 percent.

For the full year of 2024, industry and services also posted growth rates of 5.6 percent and 6.7 percent, respectively. On the other hand, AFF posted a decline of 1.6 percent in full-year 2024.

Edillon highlighted the agriculture sector in particular, which experienced setbacks, particularly between late October until mid-November, when six successive typhoons struck the country.

“These extreme weather conditions led to a 1.8 percent year-on-year contraction in the AFF sector in the fourth quarter of 2024. The AFF sector, which contributes around 8 percent to GDP and provides livelihood for about one-fourth of the workforce, faced disruptions in crop production, livestock, and fisheries, further compounding its vulnerabilities,” Edillon said.

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