Philippine economic growth accelerated to 6.3 percent in the second quarter of the year from 4.3 percent in the same period last year, National Statistician Dennis Mapa said in a briefing on Thursday.
Mapa said economic growth during the period was also higher than the 5.8 percent gross domestic product (GDP) growth recorded in the first quarter of the year.
National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said the latest economic growth makes the Philippines one of the fastest-growing economies in the region.
“This performance keeps our position as one of Asia’s best-performing major emerging economies. For East Asia’s economies that have released their second quarter 2024 GDP growth, we follow behind Vietnam at 6.9 percent while leading Malaysia at 5.8 percent, Indonesia at 5.0 percent, and China at 4.7 percent,” said Balisacan.
Among major economic sectors, industry and services grew by 7.7 percent and 6.8 percent, respectively.
Agriculture, forestry, and fishing, however, contracted by 2.3 percent due to the effects of the El Niño phenomenon.
Household final consumption expenditure grew by 4.6 percent while government final consumption expenditure expanded by 10.7 percent.
Balisacan said the increase in government final consumption expenditure was driven by the timely implementation and expanded coverage programs of various social protection, health, and education programs, and preparatory activities for the 2025 national and local elections.
Gross capital formation went up by 11.5 percent.
Public construction sustained double-digit growth of 21.8 percent as the government’s infrastructure agencies expedited the rollout of the Marcos Jr. administration’s construction and rehabilitation projects.
Exports of goods and services rose by 4.2 percent while imports of goods and services went up by 5.2 percent.
On track to meet target
“This significant development brings our real GDP growth to 6.0 percent for the first half of the year, keeping us on track to achieve our target growth rate of 6 to 7 percent for 2024,” said Balisacan.
He said the economy would need to grow by at least 6 percent in the second half to attain the lower end of the target for 2024.
Balisacan assured that the government would ensure the benefits of economic growth would be shared equitably.
“President Marcos began his 2024 State of the Nation Address with one of our most urgent priorities: the government will continue its push for food security by managing food inflation with appropriate supply-side measures,” he said.
He said the government was committed to utilizing strategic trade policy to augment insufficient domestic food supplies to meet rising demand.
The government will also expedite the rollout of social protection programs for the poor and vulnerable sectors, including enhancements to the Department of Social Welfare and Development’s Food Stamp Program and the 4Ps Program.
Aside from these, the government will also focus on raising agricultural productivity and improving farmers’ incomes and competitiveness.
“And it commits to strengthening the country’s disaster management to mitigate the impact of extreme weather, including the looming threat of La Niña, on our people’s lives and livelihoods,” said Balisacan.
Balisacan said the government would also need to keep food inflation and interest rates manageable as expected to spur both consumption and investment activity among households and businesses to strengthen economic growth prospects in the coming months and the medium term.
“Improving Filipinos’ purchasing power abilities also means that we will relentlessly pursue high-quality job creation even as we are making steady progress in our employment statistics. The government is working earnestly to improve the policy and regulatory environment further,” he said.
Balisacan added that the government would also push for critical reforms to further attract investments in critical sectors such as energy, water, and telecommunications and would also invest in human capital.
“Amid evolving risks and challenges, the Philippines’ economic outlook remains promising in the near and medium term. By adhering to the Philippine Development Plan and learning from the lessons and experiences over the last two years, we will ensure that our strategies propel us in the right direction as we move closer to our vision of a strongly rooted, comfortable, and secure life for every Filipino,” he said. (PNA)
