PH economy grew by 5.2% in Q3 —PSA

The Philippine economy grew by 5.2% in the third quarter of the year, slower than the 6.4% recorded in the previous quarter, the Philippine Statistics Authority (PSA) announced Thursday.

The PSA said this brought the average gross domestic product growth for the first three quarters of 2024 to 5.8% which is slightly below the government’s target of 6% to 7% for the year.

According to PSA chief and National Statistician Claire Dennis Mapa, the country’s gross domestic product (GDP) —the total value of goods and services produced in a period—grew by 5.2%, with the services sector posting highest contribution with 4.1%.

Industry contributed 1.3% in the GDP growth and Agriculture, Forestry, and Fishing (AFF) industry with -0.2%, he added.

The country's gross national income (GNI)  increased by 6.8% and the net primary income to 19.3%.

“Sa ikatlong quarter ng taong 2024 ang per capita GDP ay tumaas ng 4.3%. Ito ay mula sa pagtaas na 5.1% mula sa parehong quarter noong nakaraang taon. Ang per capita GNI at per capita HFCE ay parehong nakapagtala ng pagtaas na 5.8% at 4.2%,” said Mapa in a press conference. 

Major industries and services in the country posted growth of 5% and 6.3%, respectively, while the AFF recorded a -2.8% growth rate, he added. 

National Economic and Development Authority Secretary Arsenio Balisacan said the Philippines remains one of the fastest-growing economies in Asia.

"We follow Vietnam which posted a 7.4% growth rate, and are ahead of Indonesia (with 4.9%), China (4.6%), and Singapore (4.1%)," he said.

He attributed the slowdown to a contraction in the agriculture sector and moderate growth in the industry and services.

Despite this, Balisacan said the government remains optimistic it will hit its economic target for the year. He said the economy needs to grown by at least 6.5% to meet the government's target for the last quarter of 2024.

“We anticipate increases in holiday spending, more stable commodity prices, lower interest rates, and a robust labor market. In the areas affected by typhoons, recovery efforts will drive economic activity and, hopefully, build back better,” he said.

“Due to easing inflation, consumer and business sentiments have shown signs of improvement. To boost liquidity, the Bangko Sentral ng Pilipinas cut policy rates by a cumulative 50 basis points in August and October 2024, alongside a reduction in reserve requirements. We expect these interventions to spur growth in private spending, particularly on big-ticket consumer items and investments in capital-intensive infrastructure,” he added.—AOL, GMA Integrated News