Arthur Fuentes

The Makati-Taguig skyline in this photo taken on April 12, 2024.   Gigie Cruz, ABS-CBN News

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Makati-Taguig skyline

ABS-CBN News

MANILA (UPDATE 2) — The Philippines&#x27; gross domestic product expanded 5.2 percent in the fourth quarter of 2024, the Philippine Statistics Authority said on Thursday.For the whole of 2024, GDP growth was 5.6 percent meaning the country missed its 6 to 6.5  percent revised target growth rate for the year. The target was originally pegged at 6 to 7 percent.A series of storms weighed on growth in the third quarter bringing GDP expansion to a lower-than-expected 5.2 percent, much lower than the first quarter&#x27;s 5.8 percent and second quarter&#x27;s 6.4 percent.<div><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1738205424457PSA GDP 24.jpg" class="fr-fic fr-dib"/> </div>The National Economic and Development Authority said weather disturbances again weighed on growth in the fourth quarter, particularly in the agriculture, forestry and fisheries (AFF) sector.NEDA Undersecretary Rosemarie Edillon said the storms that lashed the country from October to November dampened agricultural production and also travel spending.&quot;The AFF sector contracted year-on-year by 1.8 percent in the fourth quarter of 2024 as compared with the 1.3 percent growth recorded in the same quarter of 2023,&quot; the PSA said.It noted that livestock raising contracted by 5.9 percent and was the top contributor to the decline in the fourth quarter.<div>NEW NORMAL</div>Edillon said that apart from extreme weather events, the Philippines also had to contend with geopolitical tensions, and subdued global demand, which were similar to the challenges it faced in 2023.&quot;This suggests that these conditions may represent the new normal,&quot; Edillon said.&quot;While some challenges affect the entire economy, others exert pressure on specific sectors. Consequently, our economic performance in 2024 hinged on the impact of these factors on various sectors and whether we can mitigate the negative effects or enable a swift recovery,&quot; she added.Some bright spots in the economy were the faster growth in the industry sector in the fourth quarter, particularly in construction and manufacturing.&quot;Construction and Manufacturing were the top contributors to Industry’s growth with year-on-year increases of 7.8 percent and 3.1 percent, respectively in the fourth quarter of 2024,&quot; the PSA said.Government spending also quickened, the PSA noted, growing by 9.7 percent in the fourth quarter of 2024, which was an improvement from a decline of 1 percent in the same period in 2023.&quot;For the full year of 2024, GFCE grew by 7.2 percent, faster than the 0.6 percent growth registered in 2023.&quot;Consumer spending meanwhile slowed down during the quarter. Household final consumption expenditure grew 4.7 percent year-on-year, which was lower than the 5.3 percent growth posted in the same quarter the previous year.The Services sector also grew 6.7 percent in the fourth quarter, which was slower compared with the 7.4 percent growth in the same quarter in 2023.Economic managers were hoping that easing inflation and lower interest rates would help drive consumption and growth in the fourth quarter.<div>RESILIENCE</div>Edillon said government is now focused on building resilience to boost the economy. For 2025 economic growth target remains 6 to 8 percent“This one reflects actually increased uncertainty that we’re seeing for this year. And all the more reason, really, to build resilience,” she said. The official said the Philippines will make its economy more resilient by diversifying growth sources. Edillon said government will help farmers by fast-tracking the implementation of the National Rice Program so the country can produce 20.5 million metric tons (MT) of rice this year. She also noted that government is keen on investing in irrigation, mechanization, technology, and other climate change adaptation strategies for agriculture. Edillon also said the Philippines will encourage more investments in sectors that require employees with higher-level skills, and in turn reskill its employees in the information technology and business process management (IT-BPM) sector to ensure that Pinoys remain competitive in high-value services. She added that the government will improve the ease of doing business in the Philippines by putting up more business one-stop shops around the country. The official said the government is also thinking of easing visa requirements to encourage more tourists to visit the Philippines.<div><a href="https://www.abs-cbn.com/business/2024/11/7/philippines-posts-lower-gdp-growth-in-third-quarter-925" rel="noopener noreferrer" target="_blank">Philippines posts lower GDP growth in third quarter as bad weather bites</a></div>

For the whole of 2024, GDP growth was 5.6 percent meaning the country missed its 6 to 6.5 percent target growth rate for the year.

For the whole of 2024, GDP growth was 5.6 percent meaning the country missed its 6 to 6.5 percent target growth rate for the year.

Philippine GDP grows 5.2 percent in fourth quarter, misses 2024 target

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Philippine GDP grows 5.2 percent in fourth quarter, misses 2024 target

Arthur Fuentes,

ABS-CBN News

Published Jan 30, 2025 10:19 AM PHT

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Updated Jan 30, 2025 01:45 PM PHT

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