MANILA, Philippines — The Philippine Gross Domestic Product (GDP) slowed to 5.2% in the third quarter of 2024, down from 6.4% in the second quarter, according to the Philippine Statistics Authority (PSA) on Thursday, November 7.
For the first quarter, the Philippine GDP was recorded at 5.8%. The government’s target GDP growth for 2024 is between 6% and 7%.
“This brings the average GDP growth for the first three quarters of 2024 to 5.8%, slightly below our target of 6% to 7% of the year,” National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said in a press briefing.
To achieve the government’s target, the GDP would need to reach at least 6.5% in the fourth quarter, Balisacan said.
Despite the slower growth rate, Balisacan said the Philippines still showed growth compared to other Asian countries that have reported their GDP figures. He said the Philippines was second only to Vietnam, which had a third quarter GDP of 7.4%.
The PSA reported positive growth in several sectors, including wholesale and retail trade and repair of motor vehicles and motorcycles (5.2%), financial and insurance activities (8.8%) and construction (9%).
“Industry and Services posted year-on-year growths in the third quarter of 2024 with 5.0% and 6.3%, respectively,” the PSA said.
Household Final Consumption Expenditure was the largest contributor to GDP growth, rising by 5.1%, according to PSA.
Why the slowdown?
The PSA cited a decline in agriculture as the main factor weighing down GDP growth.
The agriculture, forestry and fishing sector contracted by 2.8% year-on-year.
“On the production side, the slowdown was due to a contraction in agriculture and a moderation in growth in industry and services,” Balisacan said.
Crops suffered a year-on-year decline of 2.8% due to the severe effects of the El Niño phenomenon and a series of cyclones that struck the country, slowing down production, according to the NEDA secretary.
The fishing bans due to the oil spill in Bataan in July also slowed down aquaculture, he added.
The African Swine Flu breakout also caused a decreased livestock production in Batangas in August, he said.
Balisacan also noted a slowdown in the tourism sector as a high number of flights were canceled due to weather disturbances.
“The slowdown in tourism and leisure-related spending offset this, as weather disturbances limited domestic mobility,” Balisacan said.
There was a 1% dip in exports of goods coupled with an increase in imports.
“These imply a deep contraction in net exports by 32.6%,” Balisacan said.
There was a sharp decline in electronics exports, as the industry undergoes adjustments to meet global standards.
Balisacan also noted a slowdown in services exports, which he attributed to reduced air travel.
When asked why storms seem to be impacting the economy of a country used to cyclones, Balisacan attributed it to the worsening effects of climate change. He added that the government is working to strengthen the economy against climate-related shocks.