Philippines’ GDP expands by 6.3pc in Q2

MANILA (Xinhua) – The Philippines’ gross domestic product (GDP) in the second quarter of 2024 grew 6.3 per cent from a year earlier, up from the adjusted 5.8 per cent in the previous quarter, the Philippine Statistics Authority (PSA) said Thursday.

The PSA revised the GDP growth rate for the first quarter of 2024 to 5.8 per cent from 5.7 per cent on Wednesday night.

In a press conference, National Economic and Development Authority Secretary Arsenio Balisacan said the Philippines’ “robust growth trajectory” in the April-June quarter “demonstrates resilience amid various domestic and external challenges.”

According to the PSA, among the major economic sectors, industry and services posted year-on-year solid growth in the second quarter, at 7.7 per cent and 6.8 per cent, respectively. However, the agriculture sector experienced a 2.3 per cent year-on-year decline due to the adverse effects of the El Nino phenomenon. On the demand side, Balisacan said the acceleration in GDP growth was driven by a significant increase in total investments by 11.5 per cent, fueled by robust construction activities. “Encouragingly, private construction likewise accelerated, particularly commercial construction,” he added. “Amid evolving risks and challenges, the Philippines’ economic outlook remains promising in the near and medium term,” Balisacan said.

The Philippine government’s economic team forecasts a 6-7 per cent GDP target for 2024, 6.5-7.5 per cent in 2025, and 6.5-8 per cent in 2026 up to 2028. The Asian Development Bank forecasts Philippine economic growth at 6 per cent this year, further picking up at 6.2 per cent in 2025.