Philippines ends 2024 with 5.6% economic growth, missing gov’t target
MANILA, Philippines — The Philippines closed 2024 with an annual gross domestic product (GDP) growth rate of 5.6%, failing to meet the government’s target for the second year in a row.
President Ferdinand Marcos Jr.’s administration had aimed for a GDP growth target of 6% to 6.5% in 2024. However, for the second consecutive year, the Philippines fell short after also missing its target in 2023.
The economy grew by 5.2% in the fourth and final quarter of 2024. For three out of four quarters that year, GDP growth remained within the five-percent range.
The Philippine Statistics Authority (PSA) reported that the main industries contributing to annual growth were construction (10.3%), financial and insurance activities (9%), and wholesale and retail trade, including the repair of motor vehicles and motorcycles (5.6%).
For the fourth quarter, the same industries led economic growth: construction (7.8%), financial and insurance activities (8.5%), and wholesale and retail trade, including the repair of motor vehicles and motorcycles (5.5%).
Among the major economic sectors, industry grew by 4.4% in the fourth quarter, while services expanded by 6.7%. This resulted in annual growth rates of 5.6% and 6.7%, respectively.
However, the agriculture, forestry, and fishing sector contracted by 1.8% in the fourth quarter, bringing the full-year decline to 1.6%.
The National Economic and Development Authority (NEDA) attributed the weak performance of the agriculture sector to a series of tropical cyclones that hit the country in late 2024.
In the fourth quarter, the PSA reported declines in agriculture and fisheries (-2.2%), crops (-3.1%), fisheries (-2.1%) and livestock (-6.2%). Poultry, however, posted a 6.1% increase.
Meanwhile, gross national income (GNI) grew by 7.6% for the year, following a fourth-quarter expansion of 6.2%.
NEDA Undersecretary Rosemarie Edillon cited several challenges in achieving the government’s growth target, including extreme weather events, geopolitical tensions and subdued global demand.
“The agriculture sector in particular faced several setbacks, particularly between late October until mid-November, when six typhoons struck the country in succession,” she said.
Edillon said the path forward should focus on building resilience against such shocks.
The NEDA undersecretary added that while the government failed to meet its target for 2024, the Philippines remains one of the fastest-growing economies in Asia, trailing Vietnam (7.5%) and China (5.4%).
“Although we still emerged as one of the fastest-growing economies in the region; quality employment, although we have achieved our target employment numbers; and food inflation, although it started to go down in the second half of 2024,” Edillon said.
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