PH economy posts strong Q4 growth at 6.2% in 2024

The Philippine economy is estimated to have grown by 6.2 percent in the fourth quarter of 2024, spurred by strong consumer spending and a robust services sector, according to Rizal Commercial Banking Corporation Chief Economist Michael Ricafort. This growth would bring the full-year gross domestic product (GDP) expansion to 5.9 percent.

Ricafort highlighted that the Christmas season significantly boosted consumer spending, which accounts for over 72 percent of the Philippine economy. The uptick in consumer activity was further supported by easing inflation, which averaged 3.2 percent in 2024—comfortably within the government’s target range of 2 to 4 percent.

The services sector also played a pivotal role in driving economic performance, bolstered by strong employment figures. Data from the Philippine Statistics Authority showed that the employment rate reached 96.8 percent in November, marking one of the best outcomes in two decades.

Ricafort noted that government infrastructure spending, heightened by preparations for the May 2025 midterm elections, further accelerated economic growth in the latter part of the year.

Looking ahead, Ricafort predicts continued economic momentum in 2025, supported by easing inflation and potential reductions in policy rates. He anticipates these factors will drive growth in local and foreign tourism, micro, small, and medium enterprises, and other service industries, leading to higher sales, more jobs, and expanded economic opportunities.

Ricafort projects that the Philippine economy will grow by 6.3 percent in 2025, as businesses and consumers continue to benefit from the country’s return to greater normalcy.