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The Philippines' fourth-quarter GDP growth was 5.2% year-on-year, a result that fell short of projections.
The Philippines' fourth-quarter 2024 GDP growth of 5.2% was below expectations (5.4% forecast), primarily due to weaker consumer spending and weather-related agricultural setbacks. This matched the previous quarter's growth but resulted in a full-year expansion of 5.6%, falling short of the government's 6.0% to 6.5% target. Reduced farm output, slower household consumption, and global uncertainties contributed to the lower-than-anticipated results. Despite this, the government remains optimistic about achieving the lower end of its growth target.
The Philippines' fourth-quarter 2024 GDP growth was 5.2%, lower than the anticipated 5.4% and the same as the third quarter. This slower-than-expected growth, which resulted in a full-year expansion of 5.6% (below the government's 6.0-6.5% target), was attributed to weaker consumer spending and weather-related disruptions impacting agricultural output. The agriculture sector contracted for the third consecutive quarter, although at a slower rate. Government spending increased, but this was offset by slower household consumption. Following this news, Philippine stocks dropped. The government revised its growth target for 2025-2028 upward to 6.0-8.0% to account for global uncertainties, while expressing confidence in achieving the lower end of its 2024 target.
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