Typhoons likely derailed GDP targets, says finance chief
MANILA, Philippines — The Philippines likely missed its 2024 gross domestic product (GDP) target due to multiple typhoons that struck the country, Finance Secretary Ralph Recto said.
The government had set a GDP growth target of 6.0% to 6.5%, revised downward from an initial ceiling of 7%.
"We probably did not hit our growth targets in 2024 because of the numerous typhoons," Recto told reporters over the weekend.
The nation endured a historic string of calamities in late 2024, with six tropical cyclones battering the country from October to November. These cyclones either made direct landfall or worsened existing weather patterns, leaving communities with little time to recover between disasters. Agricultural damage alone reached approximately P10 billion.
The GDP for the previous quarters were as follows:
- First quarter: 5.8%
- Second quarter: 6.4%
- Third quarter: 5.2%
While fourth-quarter figures are pending, Recto expects stronger performance than the third quarter.
He maintains optimism about reaching 6% growth for the quarter, though he acknowledges the full-year target remains out of reach.
"If it hits [6%] in the fourth quarter, I'll be happy with that. I don't think it will hit 6% for 2024, but I think it will surpass 6% in 2025," Recto said.
Despite falling short of domestic targets, the Philippines maintains its position as Southeast Asia's second-fastest growing economy after Vietnam, the World Bank said.
In 2025, the Philippines is projected to grow by 6.1%, according to the World Bank.
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