Philippine economy misses 2024 growth target, expands 5.6%


The economy maintained its growth momentum in the fourth quarter of 2024, but the full-year expansion fell short of the government's targets, the Philippine Statistics Authority (PSA) reported.  

The country’s economy, as measured by the gross domestic product (GDP), grew by 5.2 percent from October to December, unchanged from the third quarter but slower than the 5.5 percent recorded in the same period of 2023.  

The third-quarter GDP performance brought the full-year growth rate to 5.6 percent, below the government's downwardly revised target range of 6.0 to 6.5 percent.  

The Philippines has now missed its economic growth target for the second year in a row. After exceeding the target in 2022 with 7.6 percent growth, the country fell short in both 2023 and 2024.

According to the PSA, the expansion in the fourth quarter was driven mainly by the growth in the wholesale and retail trade, repair of motor vehicles and motorcycles, financial and insurance activities, and construction. Similarly, these industries were also the major contributors to the full-year growth.

The fourth-quarter growth prevented the government from hitting the 6.0 percent to 6.5 percent target—which was revised downward in December last year given the local and global uncertainties.  
During the joint press conference, National Economic and Development Authority (NEDA) Undersecretary Rosemarie G. Edillon also reported that the government fell short of its targets for quality employment despite achieving its target employment numbers. 

Edillon noted that, similar to 2023, the government “faced numerous setbacks like extreme weather events, geopolitical tensions, and subdued global demand.”

In particular, the agriculture sector suffered between late October until mid-November, when six typhoons successively ravaged the Philippine archipelago. 

Industry and services drove the 2024 quarter-four growth at 4.4 percent and 6.7 percent, respectively. On the other hand, manufacturing lagged at 3.1 percent, which “has been hampered by subdued global demand due to geopolitical tensions and the slow recovery of advanced economies.” 

Considering this trend, NEDA is ramping up its efforts to bolster the local economy and regain its growth momentum.

Regaining growth strength

“Looking ahead to 2025, we want to regain our growth momentum driven by strategic investments and initiatives designed to strengthen resilience and lay the foundation for long-term, inclusive growth,” Edillon said.

Edillon emphasized the need to diversify the government’s sources of growth to reach economic growth resilience.

“For inclusive quality employment, we must encourage more investments in sectors that require workers with higher-level skills and further develop an agile workforce,” she added.  

As for keeping the inflation tamed, she emphasized the need to anticipate potential shocks influenced by both global and local events.  

With global trade risks stemming from the comeback of Donald Trump in the political scene, she assured the public that the Marcos Jr. administration will “maximize the opportunities with long-standing partners while expanding new free trade agreements (FTAs).”

Locally, the Department of Agriculture (DA) is set to accelerate the National Rice Program to meet the agency’s 20.5 million MT production target, as the agriculture sector recently struggled with typhoons, droughts, and climate disruptions.

“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,” NEDA also said in a Jan. 30 statement.

According to NEDA, all these measures are part of the goal to lift more Filipinos out of the poverty trap. Three years from now (2028), the government aims to slash the number of poor individuals by below 10 percent. Data showed that nearly around 15 in 100  Filipinos were struggling to fund their needs as of 2023.

“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,” NEDA said.

These, NEDA said, are within the government’s reach provided that the government maintains a robust workforce, stable inflation, and sound fiscal management.