Philippine Economy Grows 5.2% in Q3, Slowing from Previous Quarter

The Philippine economy expanded by 5.2% in the third quarter of 2024, down from the 6.4% growth recorded in Q2, as reported by the Philippine Statistics Authority (PSA) on Thursday. This brings the year-to-date average GDP growth to 5.8%, slightly under the government’s target range of 6% to 7% for the year.

According to PSA Chief and National Statistician Claire Dennis Mapa, the services sector contributed the most to the GDP with a 4.1% growth, while industry added 1.3%. Agriculture, however, contracted by -2.8%, negatively impacting the overall growth rate.

Gross national income (GNI) rose by 6.8%, with net primary income up by 19.3%. Per capita GDP grew by 4.3%, and per capita GNI and household final consumption expenditure (HFCE) increased by 5.8% and 4.2%, respectively.

National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan noted that, despite the slowdown, the Philippines remains among the fastest-growing economies in Asia, trailing only Vietnam’s 7.4% growth and outpacing Indonesia, China, and Singapore.

Balisacan attributed the Q3 slowdown to a decline in agriculture and moderated growth in industry and services. However, he expressed optimism that the government’s economic target is still achievable, projecting a boost from holiday spending, stabilized commodity prices, lower interest rates, and an active labor market. The recent reductions in policy rates and reserve requirements by the Bangko Sentral ng Pilipinas are also expected to stimulate private spending and infrastructure investment in Q4.