PH Economy Misses Growth Target for Second Straight Year

MANILA – The Philippine economy grew by 5.6% in 2024, falling short of the government’s 6.0% to 6.5% target range, according to data released by the Philippine Statistics Authority (PSA) on Thursday.

Despite maintaining a 5.2% growth rate in Q4, the country failed to meet its economic target for the second consecutive year, after also missing the 2023 goal with a 5.5% growth rate. The last time the economy exceeded its target was in 2022, with 7.6% growth.

Regional Standing & Sector Performance

The Philippines remains the third fastest-growing economy in the region, behind Vietnam (7.5%) and China (5.4%), but ahead of Malaysia (4.8%).

Sector-wise:
✅ Services grew by 6.7%
✅ Industry expanded by 5.6%
❌ Agriculture, forestry, and fishing contracted by 1.6%, with agriculture alone declining 2.2%, largely due to six typhoons in late 2024.

Key Growth Drivers & Challenges

• The biggest contributors to growth were wholesale and retail trade (5.6%), financial and insurance activities (9.0%), and construction (10.3%).
• Household spending rose 4.8%, while government spending increased 7.2%.
• Manufacturing slowed to 3.1%, affected by weak global demand, geopolitical tensions, and semiconductor industry shifts.

Government Response & Outlook

NEDA Undersecretary Rosemarie Edillon attributed the slower-than-expected growth to extreme weather events, global uncertainties, and economic slowdowns in advanced countries, which she noted may represent a “new normal.”

Moving forward, NEDA emphasized the need for:
✅ More investments in high-skill industries
✅ Stronger strategies to stabilize food inflation
✅ Monetary policy adjustments to boost growth

Despite missing targets, NEDA Secretary Arsenio Balisacan described the economic performance as “impressive,” citing resilience amid challenges.