FILE

The Philippine economy posted solid growth in the third quarter of 2024, with Gross Domestic Product (GDP) expanding by 5.2% compared to the same period last year. Let’s break down what’s behind this encouraging uptick.

Key Sectors Fueling Growth

Three big industries stood out this quarter as the main drivers of growth:
- Wholesale and Retail Trade (including repairs of motor vehicles and motorcycles) held steady, also growing by 5.2%.
- Financial and Insurance Activities saw an impressive 8.8% boost, driven by increased activity in banking, lending, and insurance.
- Construction came out strong with a 9.0% rise, signaling that investments in infrastructure are alive and well.

Looking at the broader economic sectors, Industry and Services both recorded positive growth rates, at 5.0% and 6.3%, respectively. Unfortunately, it wasn’t all good news. The Agriculture, Forestry, and Fishing sector took a hit, shrinking by 2.8%, likely due to challenges like weather disturbances and rising costs in the sector.

Household Spending and Investment on the Rise

On the demand side, Filipinos are spending and investing more! Household consumption, which fuels much of the country’s economic engine, grew by 5.1%, reflecting steady demand for goods and services. Other demand highlights include:
- Government Consumption rose by 5.0%, likely spurred by public spending on services and social programs.
- Capital Investments surged with a 13.1% increase, which means more businesses and the government are investing in long-term assets.
- Imports also went up by 6.4%, suggesting an increase in local demand for foreign goods and services.

On the flip side, Exports slipped by 1.0%, which reflects some global trade challenges that have impacted the Philippines’ ability to sell goods and services overseas.

A Boost from Overseas Income

Another bright spot was the 6.8% growth in Gross National Income, bolstered by a remarkable 19.3% jump in Net Primary Income from the Rest of the World. In simpler terms, this growth shows that overseas Filipinos and other sources of international income are sending even more funds back home, further fueling domestic spending and investment.

What’s Next?

While this growth is promising, keeping it up will depend on several factors—continued resilience in key sectors, more investments, and overcoming the challenges facing agriculture. With just a quarter left in 2024, the country’s economic pulse remains strong, but how it finishes the year could depend on global factors as well as domestic policies and spending.

This latest economic update shows the Philippines is pushing forward despite some headwinds. With continued momentum, there’s hope that 2024 could end on a high note for the country!