Trade and Industry Secretary Alfredo E. Pascual said the domestic economy is on track to reach the government’s growth target of six percent to seven percent this year, citing strong contributions coming from the manufacturing, finance, and trade sectors, among others.
Pascual, in a statement, was encouraged by the 5.7 percent growth rate in the country’s gross domestic product (GDP) in the first quarter this year, whichg was higher than the revised 5.5 percent figure reported for the fourth quarter of 2023. The latest figure, however, was lower than the 6.4 percent expansion posted in the first quarter of 2023.
“Despite several challenges in the first quarter of 2024, our economic performance underscores our enduring resilience both domestically and internationally,” Pascual said following the Philippine Statistics Authority’s release of the latest GDP report for the first quarter of 2024.
Pascual noted that the country’s GDP in the first quarter was driven by the financial and insurance, wholesale and retail trade, and manufacturing sectors. In terms of sectoral growth, the services sector reported 6.9 percent growth, while industry and agriculture, forestry, and fishing posted 5.1 percent and 0.4 percent, respectively.
“These data signal the Philippine economy's positive trajectory towards achieving a growth rate of 6.0% to 7.0% this year. The DTI is one of the major contributors to this growth, implementing key programs and actions to foster a robust business environment and fuel economic development,” the trade chief added.
According to Pascual, the DTI has been steadfast in its efforts and said it has strategically contributed to the Philippines’ economic expansion by focusing on upgrading, upskilling, and upsizing of micro, small, and medium enterprises to boost their competitiveness and productivity.
The DTI is also at the forefront of enhancing manufacturing capabilities by facilitating technology adoption in line with Industry 4.0, encompassing smart manufacturing initiatives, skills development, and fostering industry innovation to improve production efficiency and global competitiveness.
To ensure sustained growth, Pascual said that the DTI will continue attracting foreign and domestic investments, by actively promoting the Philippines as a desirable investment destination.
The DTI is also keeping its thrust to generate jobs, increase exports, and maintain a positive trade balance by streamlining processes and providing incentives to businesses.
He cited the 4.8 percent growth in merchandise exports in the first quarter of 2024 compared to the same period last year.
“This upward trend is set to boost the country’s export performance in the areas of electronics, mainly semiconductors and electronic data processing, copper concentrates, coconut oil, fresh bananas, and chemicals,” said Pascual.