Philippines Economic Update, December 2024

World Bank

Philippines Economic Update, December 2024

Autores

World Bank

Editor

Washington, DC: World Bank

Descripción

The Philippines was one of the fastest-growing economies in EAP, with GDP growth increasing to 5.8 percent in Q1-Q3 2024 (5.6 percent in Q1-Q3 2023). Services continued to lead growth, mainly financial services, wholesale and retail trade, and business services. Industry growth increased as manufacturing benefited from the slight recovery in goods exports and solid domestic demand. Increased construction activity likewise bolstered industry and investment growth due to strong public infrastructure spending. However, agriculture contracted due to the impact of extreme weather events, highlighting the sector’s vulnerability to climate shocks and longstanding structural challenges resulting in low productivity. On the demand side, faster growth of government spending supported growth driven by improved program execution. Household consumption growth, while still the main driver of growth, edged down compared to a year ago due to inflationary pressures in key staple commodities and tight financing conditions. The Philippines Economic Update (PEU) summarizes key economic and social developments, significant policy changes, and the evolution of external conditions over the past six months. It also presents findings from recent World Bank analyses, situating them in the context of the country’s long-term development trends and assessing their implications for its medium-term economic outlook. The update covers issues ranging from macroeconomic management and financial-market dynamics to poverty reduction and social development challenges. It is intended to serve the needs of a wide audience, including policymakers, business leaders, private firms and investors, and analysts and professionals engaged in the social and economic development of the Philippines.