Philippines among Asia’s fastest-growing economies 

The Philippine economy emerged as one of Asia’s fastest-growing in 2024, registering robust expansion despite global headwinds and natural disasters. Economic growth for the first three quarters averaged 5.8%, outpacing regional peers like Malaysia (5.2%), Indonesia (5.0%), China (4.8%), and Singapore (3.8%).

According to National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan, this growth underscores the resilience of the Philippine economy in the face of challenges, including prolonged El Niño conditions and successive typhoons.

“Our GDP growth averaged 5.8% for the first three quarters of 2024, marking us as one of Asia's fastest-growing economies. This is a testament to our people's hard work and sound government policies amid tough conditions,” Balisacan stated.

Inflation Eases, Boosting Purchasing Power

The Department of Finance (DOF) attributed the economic performance partly to the government’s efforts to curb inflation. From a high of 6.0% in 2023, inflation eased to 3.2% by November 2024, aided by measures like Executive Order (EO) 62, which reduced rice import tariffs.

The drop in rice inflation, which declined from 22.5% in June to 5.1% in November, provided relief to consumers and supported economic activity. Initiatives like the expansion of Kadiwa stores nationwide further benefited low-income households, with inflation for the bottom 30% of earners declining to 2.9% in November from 5.8% in July.

With inflation firmly within the government’s 2–4% target, economic managers are optimistic about achieving the lower end of the 6–6.5% GDP growth target for 2024.

Positive Outlook for the Fourth Quarter

Economic managers are hopeful for a strong fourth-quarter performance, citing factors such as holiday spending, stable commodity prices, robust remittance inflows, and a healthy labor market.

"The economy needs to grow by at least 6.5% in the fourth quarter to meet our annual growth target. We remain optimistic this is achievable," Balisacan said.

Long-Term Growth Targets

Looking ahead, the government has set an ambitious GDP growth target of 6–8% annually from 2025 to 2028. The Development Budget Coordination Committee (DBCC) outlined key strategies to achieve this, including accelerating infrastructure investments, enhancing ease of doing business, and boosting national competitiveness.

The implementation of reforms under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act is expected to attract foreign investment and drive higher growth.

Balisacan also highlighted the Philippines’ potential to achieve upper middle-income country (UMIC) status by 2025, contingent on maintaining its growth trajectory and stabilizing the peso. The World Bank defines UMIC economies as having a gross national income (GNI) per capita of USD4,516 to USD14,005. The Philippines' GNI per capita stood at USD4,230 at the end of 2023.

Sustaining Momentum

To sustain economic momentum, the government plans to prioritize infrastructure development, expedite project rollouts, and improve fiscal support for flagship initiatives. Efforts to streamline business processes and strengthen investor confidence are also underway.

Balisacan emphasized the importance of expanding external trade through free trade agreements (FTAs) with partners like the European Union and the United Arab Emirates to boost non-traditional exports and services.

Additionally, the government aims to modernize tourism infrastructure and adapt to technological advancements to further stimulate growth.

"The Marcos administration remains committed to genuine social and economic transformation, paving the way for a stable, comfortable, and tranquil life for all Filipinos," Balisacan concluded.