Philippines Achieves Robust Economic Growth Despite Challenges
MANILA – The Philippines reported a 5.6% economic growth for the year 2024, slightly below the government’s 6 to 6.5% target. However, Budget Secretary Amenah Pangandaman emphasized that this figure still places the country among the fastest-growing economies in the Asia Pacific region, surpassing many ASEAN neighbors.
Economic Challenges of 2024
Pangandaman highlighted significant economic challenges faced in 2024, including a historic typhoon season. Six consecutive storms hit the country between October and November, significantly impacting economic activities. In spite of these adverse effects, the economy managed to achieve a strong growth rate of 5.6%, demonstrating the resilience of the economic formula in place.
Role of Infrastructure and Government Spending
The Build Better More Program, a cornerstone of the government’s infrastructure initiative, played a pivotal role in driving this growth. Construction provided the largest contribution to the economy, seeing a 7.8% growth in the fourth quarter and a 10.3% increase for the year. Efficient budget utilization, particularly in government-final consumption expenditure, also boosted the economy, with this segment experiencing the highest year-on-year growth rate of 9.7%.
Looking Ahead: The Agenda for Prosperity
Pangandaman, who also chairs the Development Budget Coordination Committee, is confident in the government’s ability to stay on track with its Agenda for Prosperity. The focus remains on implementing priority programs and strategies aligned with the 8-Point Socioeconomic Agenda and the Philippine Development Plan 2023-2028. These initiatives aim to foster a sustainable and resilient economic environment, ensuring continued progress towards long-term growth.
“Moving forward, we will ensure that all the necessary support is in place to further boost our GDP growth and pursue our Agenda for Prosperity.”
Budget Secretary Amenah Pangandaman
Economic Indicators
DBM Principal Economist Joselito Basilio provided further insight into the economic indicators. Despite the uncertainties, Gross Domestic Product remained steady, while Gross National Income recorded a year-on-year growth of 6.2% in the fourth quarter. The full-year 2024 growth in Gross National Income reached 7.6%, underscoring the resilience and strength of the Philippine economy.
Efforts to Address Underspending
The government has taken proactive steps to address underspending issues. By allocating sufficient budgets to programs with the highest multiplier effects and intensifying efforts to advance infrastructure, the government has helped sustain the country’s economic growth. Basilio highlighted the successful implementation of policies aimed at strengthening economic resilience.
Conclusion
In conclusion, despite facing significant challenges such as severe weather events, the Philippines achieved a commendable economic growth rate of 5.6% in 2024. The Build Better More Program and efficient budget management played crucial roles in this accomplishment. Moving forward, the government remains committed to its Agenda for Prosperity, focusing on sustainable and inclusive economic growth.
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