Philippines’ GDP grows 5.2% in third quarter of 2024

The Philippine economy continued to expand at a 5.2% pace in the third quarter of 2024, driven by increased private spending, Finance Secretary Ralph G. Recto said Tuesday.

The country’s gross domestic product (GDP) growth outpaced those of Indonesia (5.0%), China (4.6%), and Singapore (4.1%) in the same period.

For the first nine months of the year, the Philippines’ GDP growth also surpassed Indonesia (5.0%), China (4.9%), and Singapore (3.3%).

“Household spending is particularly a bright spot, growing by 5.1%, faster than the last two quarters due to slower inflation,” Recto said. “The recent policy rate cuts and reserve requirement reduction could help bring in more liquidity to the economy and increase our people’s purchasing power.”

As interest rates decline, private construction is expected to rebound due to lower housing loan costs. Economic managers also anticipate increased consumer spending, especially on non-essential items, as the holiday season approaches amid stable prices and a robust labor market.

On the supply side, the industry and services sectors continued to expand by 5.0% and 6.3%, respectively, although at a slower pace compared to the previous year.

However, the agriculture sector contracted by 2.8% due to the combined impact of El Niño, La Niña, and several typhoons.

“The government has been responsive in providing the much-needed support for our farmers, fishermen, and the rest of the agriculture workers to improve their productivity,” Recto said.

On the demand side, domestic demand growth remained strong at 6.6%, fueled by accelerated household spending and sustained double-digit growth in total investments.

To sustain economic growth, the government is pushing for the passage of the proposed 2025 national budget, which allocates over 60% of its funds to social and economic services. The administration also aims to strengthen climate mitigation efforts, disaster preparedness, and response initiatives.

The Department of Agriculture will accelerate its African swine fever vaccination program and other interventions to boost agricultural production. Additionally, the extension of the Rice Competitiveness Enhancement Fund will support local rice production and benefit farmers.

The Department of Finance will continue to monitor inflation and implement measures to keep it within target. The government also plans to sustain high public spending on infrastructure projects and promote public-private partnerships to attract private investment.