Philippines outperforms other Asian countries in 2024

The Philippines outperformed most Asian economies in 2024, posting a solid 5.8% growth in the first three quarters.

Its growth outpaced key regional economies, including Malaysia (5.2%), Indonesia (5.0%), China (4.8%), and Singapore (3.8%).

The third-quarter expansion of 5.2% came on the back of robust capital formation and accelerated government spending.

The National Economic and Development Authority (NEDA) noted the resilience of the economy, especially in the face of weather-related disruptions such as El Niño drought and severe typhoons, highlighting the strength of the country's recovery.

It said inflation, which averaged 6.0% in 2023, eased to 3.2% by November 2024, within the government's target range.

The moderation in inflation was led by a drop in rice prices, which fell from 22.5% in June to 5.1% in November, following the implementation of Executive Order (EO) 62 that lowered rice import tariffs.

The Department of Finance (DOF) said rice price reductions, combined with more Kadiwa stores nationwide, have benefited the bottom 30% of households, helping to bring their inflation rate down to 2.9% in November, compared with 5.8% in July.

With inflation under control, the government remains confident in achieving its full-year growth target of 6.0-6.5%. The holiday season is expected to fuel stronger consumer spending, while stable commodity prices and robust remittance inflows provide further economic support.

Economic managers have set a 6.0-8.0% growth target for 2025-2028.

To meet this goal, the government plans to accelerate infrastructure investments, improve the ease of doing business, and strengthen national competitiveness.