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PH economic growth fell short of 2024 target, market expectations
In 2024, the Philippine economy grew by 5.6%, slightly surpassing the 5.5% growth of 2023.owever, this growth fell short of the government's target range of 6.0% to 6.5% for the year. he fourth quarter saw a 5.2% year-on-year growth, matching the third quarter's performance but slower than the 5.5% recorded in the same period of 2023. ontributing to the annual growth were sectors such as wholesale and retail trade; repair of motor vehicles and motorcycles (5.6% growth), financial and insurance activities (9.0%), and construction (10.3%). espite these positive contributions, the economy faced challenges, including extreme weather events, geopolitical tensions, and subdued global demand, which impacted growth. ooking ahead, the government has adjusted its growth targets for 2025-2028 to a range of 6.0% to 8.0%, reflecting evolving uncertainties.
In 2024, the Philippine economy grew by 5.6%, slightly surpassing the 5.5% growth in 2023, but still falling short of the government’s target range of 6.0% to 6.5%. The fourth quarter saw a growth rate of 5.2%, which was on par with the third quarter but slower than the 5.5% recorded in the same period of 2023. Several key sectors contributed to the economy’s growth, with wholesale and retail trade (5.6% growth), financial and insurance activities (9.0%), and construction (10.3%) showing notable improvements. These sectors were buoyed by strong consumer demand, robust financial services, and ongoing infrastructure investments.
Despite these positive contributions, the economy faced significant challenges. Extreme weather events, including typhoons and floods, disrupted agriculture and infrastructure, while geopolitical tensions and subdued global demand also weighed on the economy. These factors impacted key industries such as exports and manufacturing, contributing to the slower-than-expected growth.
Looking ahead, the government has revised its growth targets for 2025-2028 to a range of 6.0% to 8.0%, reflecting the evolving uncertainties in both domestic and global conditions. These adjustments indicate a cautious but optimistic outlook, with a focus on addressing challenges while fostering long-term economic stability.
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