The Philippine economy is expected to grow faster in the last quarter of 2024 compared to the third quarter, despite a series of cyclones affecting the agriculture sector, according to National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan.
Speaking at NEDA’s year-end press conference, Balisacan expressed optimism that the country could still achieve its 6% to 7% growth target for the year, citing strong macroeconomic fundamentals. He pointed to factors such as holiday spending, stable commodity prices, robust remittance inflows, and a resilient labor market as key drivers of the anticipated growth.
So far, the Philippine economy has grown by 5.8% in the first three quarters of 2024, slightly below the government’s target range. However, Balisacan emphasized that positive economic forces could offset the challenges posed by weather-related disruptions, particularly in agriculture, which makes up nearly 10% of the economy.
Lower inflation, which stood at 3.3% from January to October 2024, along with declining interest rates and cuts in reserve requirements by the Bangko Sentral ng Pilipinas (BSP), are expected to stimulate private spending and investments, Balisacan added.
The labor market also showed improvements, with labor force participation rising to 65.7% and unemployment dropping to 3.7% in September, compared to 4.5% the previous year.
“These developments, combined with the BSP’s measures to boost liquidity, will likely spur growth in private spending and investments, setting the stage for stronger economic performance in the coming quarters,” Balisacan said.
