The Philippine economy experienced a robust 6.3 percent growth in the second quarter of 2024, primarily fueled by a construction boom, according to the Philippine Statistics Authority (PSA). This marks an acceleration from the revised 5.8 percent growth in the first quarter, resulting in an average growth rate of 6 percent for the first half of the year.
National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan stated that to meet the government’s target growth rate of 6 to 7 percent for 2024, the economy would need to grow by 6 percent in the second half. Balisacan highlighted the country’s strong economic position, ranking just behind Vietnam in East Asia’s second-quarter GDP growth, while outpacing Malaysia, Indonesia, and China.
National Statistician and PSA Undersecretary Dennis Mapa emphasized the significant impact of construction on this growth, with Gross Fixed Capital Formation in construction increasing by 16.1 percent. Both public and private construction sectors contributed to this surge, with public construction growing by 20.8 percent and private construction by 9.9 percent.
The construction sector also contributed to job creation, adding nearly a million jobs in June 2024 compared to the previous year. Besides construction, wholesale and retail trade and financial activities also saw substantial growth.
Conversely, the agriculture sector faced challenges, posting a 2.3 percent decline year-on-year due to the El Nino phenomenon. Household Final Consumption Expenditure grew by 4.6 percent year-on-year but saw a slight quarter-on-quarter decline of 0.1 percent.
Looking ahead, the government aims for a 6.5 to 7.5 percent GDP growth rate in 2025. To combat persistent inflation concerns, Balisacan indicated that the government might increase food imports to stabilize prices.