PHILIPPINE ECONOMY IMPROVED WITH 5.7% GDP IN 2024’S FIRST QUARTER

The Philippine economy has improved but is low compared to the last quarter of 2023, attributed to the extreme heat. The intense heat today is not only felt in the sweat but also in the pocket.

Though the economy grew, the heat weather have affected several sectors (Photo courtesy of PSA/Inquirer)

Based on data from the Philippine Statistics Authority (PSA), the country's Gross Domestic Product (GDP) is 5.7% this first quarter of the year. In fact, it grew slightly compared to the previous quarter.

But it was down compared to 6.4% in the same period last year. GDP is the total value of goods and services produced by a country. As a measure of the economy, a big factor here is what is called consumer or household spending or in other words spending.

People today prefer to stay at home rather than going out and sweating under the sun. So no wonder that Filipinos' spending in the first three months of this year was the weakest since 2010 except for the pandemic.

In addition to keeping spending was down, heat also cuts down on work. 2 million Filipinos are unemployed based on PSA data in March. And heat is usually the reason, especially those in the agriculture and construction sectors who are often exposed to the sun.

When the number of workers decreases, especially among farmers who also suffer losses due to El Niño, the next twin of that is inflation or the speed of the price of goods. That is what the National Economic and Development Authority (NEDA) is now focusing on, the agency is working hard to reach the target of 6%-7% GDP this year from the current 5.7%.

After being hit by rapidly rising consumer prices, consumption may suffer in an environment with high financing rates. The Marcos government was forced to lower its GDP growth target for this year from 6.5 to 7.5 percent to 6 to 7 percent as a result.

The country’s economy growth faster than the 5.5% on the previous quarter despite the stubbornly elevated borrowing costs and high inflation.

Source: ABS-CBN News

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