The Philippine economy expanded 6.3 percent in the second quarter of 2024, solidifying its position as one of Asia’s best-performing major emerging economies.
In its latest report, the Philippine Statistics Authority (PSA) revealed that the economy, as measured by gross domestic product (GDP), went at its fastest pace since the second quarter of 2023 when it grew 4.3 percent.
It also surpassed the revised 5.8 percent GDP growth recorded in the first quarter of the year.
This brought GDP growth to 6 percent in the first half of the year, keeping the government on track to achieve its target growth rate of 6 to 7 percent for 2024.
“This performance keeps our position as one of Asia’s best-performing major emerging economies,” National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said.
“For East Asia’s economies that have released their second quarter 2024 GDP growth, we follow behind Vietnam at 6.9 percent while leading Malaysia at 5.8 percent, Indonesia at 5.0 percent, and China at 4.7 percent,” he added.
Among the major economic sectors, industry and services posted year-on-year solid growth in the second quarter, at 7.7 percent and 6.8 percent, respectively.
However, the agriculture sector experienced a year-on-year decline of 2.3 percent, with the sector adversely affected by the El Niño phenomenon.
“While these numbers are encouraging, our growth performance could have been even more impactful on all Filipinos if not for the high inflation and interest rates that the country experienced in the last two years,” Balisacan pointed out.
“While inflation was faster at 4.4 percent in July 2024, we expect it to revert to its longer-term downtrend as we aim for our target range of 2 to 4 percent. Year-to-date, average inflation from January to July 2024 stands at 3.7 percent,” he added.
For his part, Finance Secretary Ralph Recto said the country’s impressive growth performance clearly demonstrates that infrastructure is the way forward.
“We need to build more, build better, and build faster so that Filipinos can reap the benefits of these high-impact projects at the soonest possible time,” Recto said.
“They will not only produce more jobs but improve the overall quality of life of our people,” he added.
Recto said favorable factors are in place to allow 10 million more Filipinos to be lifted out of poverty in the next four years and to achieve a single-digit poverty rate of 9 percent.
Meanwhile, Budget Secretary Amenah F. Pangandaman said the respectable second-quarter GDP growth indicated that the administration is allocating funds where they count the most.
“We are very happy with the good news of 6.3 percent GDP growth for the second quarter of 2024. This is a big leap from our 5.7 percent growth in the first quarter and even higher than our 5.8 percent projected growth,” she noted.
“This is especially good news as Congress begins deliberations on our proposed FY 2025 National Budget because it proves that our strategic prioritization in the budget is effective in implementing our Agenda for Prosperity,” she added.
“Rest assured, we are focused on pursuing job-creating growth and poverty-reducing growth, and we are inspired to work even harder toward our inclusive economic transformation and sustainable growth,” Pangandaman said.
At the lower chamber, Speaker Martin Romualdez called the country’s 6.3 percent GDP growth in the previous quarter an “encouraging development,” as he attributed recent economic inroads to the strategic policies of President Marcos and a supportive Congress.
He expressed optimism over the country’s economic trajectory, highlighting the collaborative efforts between the executive and legislative branches as key drivers of this growth.
“The 6.3 percent economic growth rate shows the effectiveness of President Bongbong Marcos’ economic strategies and the solid legislative support of Congress. Our economy is steadily recovering and growing, creating more job opportunities and improved quality of life for Filipinos,” Romualdez said.
The Speaker highlighted the impressive performance of labor-intensive sectors, particularly industry and services, which posted year-on-year growth rates of 7.7 percent and 6.8 percent, respectively.
Romuladez pointed out that government spending surged by 10.7 percent, reflecting the administration’s commitment to public services and infrastructure development.
“Our government’s focus on infrastructure projects and public services is paying off. The substantial growth in government spending underscores our dedication to building a better future for all Filipinos,” he said.
