BUSINESS
Advocates Philippines
Philippine Economy Powers Ahead With 6.3% Growth In Q2 2024
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The Philippine economy continues to chug along at a solid pace, posting a year-on-year growth of 6.3% in the second quarter of 2024. This growth wasn’t just a blip—it was driven by some major players in the economy, and they’re showing no signs of slowing down.
One of the biggest movers this quarter was the construction sector, which saw a whopping 16.0% growth. Whether it’s new buildings springing up or roads being laid down, construction is clearly on a roll. Next up is the retail and trade sector, including the repair of motor vehicles and motorcycles, which revved up with a 5.8% growth. The financial and insurance activities also pulled their weight, contributing a steady 8.2% increase.
Looking at the bigger picture, both the Industry and Services sectors are flexing their muscles with year-on-year growths of 7.7% and 6.8%, respectively. These sectors are key pillars of the economy, and their continued growth is a good sign for the country’s overall economic health. However, not all sectors are enjoying the same success. The Agriculture, forestry, and fishing sector took a hit, declining by 2.3%, which serves as a reminder that there are still challenges to tackle.
On the spending side, it’s clear that Filipinos are keeping the economy humming. Household Final Consumption Expenditure, essentially the spending by everyday consumers, was the top contributor to the GDP growth, rising by 4.6%. People are out there buying, spending, and keeping the wheels of the economy turning. Government spending also made a strong showing, with a 10.7% increase, while investments in capital formation surged by 11.5%. Even trade showed positive numbers, with exports growing by 4.2% and imports by 5.2%.
The country’s Gross National Income (GNI) also saw a significant boost, growing by 7.9% year-on-year, thanks in part to a robust 24.7% increase in Net Primary Income from the Rest of the World. This means that not only is the domestic economy doing well, but the income from Filipinos working abroad and other international sources is also contributing to the nation’s prosperity.
All in all, the second quarter of 2024 is shaping up to be a strong one for the Philippine economy, with several key sectors driving growth and consumer spending remaining robust. As long as these trends continue, the country is well on its way to further economic resilience and expansion.
One of the biggest movers this quarter was the construction sector, which saw a whopping 16.0% growth. Whether it’s new buildings springing up or roads being laid down, construction is clearly on a roll. Next up is the retail and trade sector, including the repair of motor vehicles and motorcycles, which revved up with a 5.8% growth. The financial and insurance activities also pulled their weight, contributing a steady 8.2% increase.
Looking at the bigger picture, both the Industry and Services sectors are flexing their muscles with year-on-year growths of 7.7% and 6.8%, respectively. These sectors are key pillars of the economy, and their continued growth is a good sign for the country’s overall economic health. However, not all sectors are enjoying the same success. The Agriculture, forestry, and fishing sector took a hit, declining by 2.3%, which serves as a reminder that there are still challenges to tackle.
On the spending side, it’s clear that Filipinos are keeping the economy humming. Household Final Consumption Expenditure, essentially the spending by everyday consumers, was the top contributor to the GDP growth, rising by 4.6%. People are out there buying, spending, and keeping the wheels of the economy turning. Government spending also made a strong showing, with a 10.7% increase, while investments in capital formation surged by 11.5%. Even trade showed positive numbers, with exports growing by 4.2% and imports by 5.2%.
The country’s Gross National Income (GNI) also saw a significant boost, growing by 7.9% year-on-year, thanks in part to a robust 24.7% increase in Net Primary Income from the Rest of the World. This means that not only is the domestic economy doing well, but the income from Filipinos working abroad and other international sources is also contributing to the nation’s prosperity.
All in all, the second quarter of 2024 is shaping up to be a strong one for the Philippine economy, with several key sectors driving growth and consumer spending remaining robust. As long as these trends continue, the country is well on its way to further economic resilience and expansion.
Aug 8, 2024
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