PHILIPPINE GDP GREW 5.2% IN THE FOURTH QUARTER OF 2024, MISSES TARGET


Philippine economy failed to meet the government’s 2024 growth target as the country’s GDP grew 5.2% in the fourth quarter (Photo courtesy of Naga CEPPIO)
The Philippines’ gross domestic product (GDP) expanded 5.2% in the fourth quarter failing to meet the government’s 2024 growth target, data from the Philippine Statistics Authority (PSA) showed.
For the whole of 2024, GDP growth was 5.6%, which means the country missed its 6% to 6.5% target growth rate for the year that was originally pegged at 6% to 7%.
The PSA said the main contributors to the fourth-quarter growth were wholesale and retail trade. Followed by the repair of motor vehicles and motorcycles, 5.5%; financial and insurance activities, 8.5%; and construction, 7.8%.
While the industries that contributed the most to the annual growth for the whole 2024 were wholesale and retail trade; repair of motor vehicles and motorcycles, 5.6%; financial and insurance activities, 9.0%; and construction, 10.3%.
However, the Agriculture, forestry, and fishing (AFF) sector posted a year-on-year decline of 1.8 percent. Finance Secretary Ralph Recto earlier said the Philippines may not hit its 2024 growth target due to the series of storms that battered the country which prevented the economy from further growing.
Meanwhile, consumer spending slowed down during the quarter. Household final consumption expenditure grew 4.7% year-on-year, which was lower than the 5.3% growth posted in the same quarter the previous year.
The Services sector also grew 6.7 percent in the fourth quarter, which was slower compared with the 7.4 percent growth in the same quarter in 2023.
The PSA also noted that the government spending also quickened, growing by 9.7% in the fourth quarter of 2024, which was an improvement from a decline of 1% in the same period in 2023.
Economic managers were hoping that easing inflation and lower interest rates would help drive consumption and growth in the fourth quarter
Source: ABS-CBN News
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