Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman today welcomed the news that the Philippines posted a 5.2 percent GDP growth rate in the fourth quarter of 2024 and 5.6 percent for the full year.
“While our target for 2024 is 6.0 to 6.5 percent, the results still put the Philippines among the fastest-growing economies in the Asia Pacific region, outpacing many of our ASEAN neighbors, and still propelling our desired economic transformation,” Pangandaman said in a statement.
Pangandaman added that economic challenges were significant in 2024, especially as the Philippines experienced a record-breaking typhoon season, with six consecutive storms between the end of October and the middle of November—under a month—in the fourth quarter, which greatly affected the economy.
“The fact that we still hit 5.6 percent in spite of all these storms shows that our formula for growth is working,” Pangandaman added.
The Budget Secretary and Chairperson of the Development Budget Coordination Committee noted that the Build-Better-More program is also working as construction was the biggest contributor to both the Q4 growth (7.8 percent) and the full-year 2024 growth rate (10.3 percent).
Meanwhile, efforts by the DBM to push more efficient budget utilization saw positive results as Government Final Consumption Expenditure had the highest year-on-year growth rate at 9.7 percent.
DBM Principal Economist Joselito R. Basilio added, “The significant contributions of government spending highlight the effectiveness of the National Government’s efforts in sustaining economic growth, particularly in addressing issues of underspending, providing sufficient budgets to programs with the highest multiplier effects, and intensifying efforts to advance the country’s infrastructure systems through the Build-Better-More Program.”
Pangandaman said that the government will stay focused as it ensures that it is on track with its Agenda for Prosperity: “For the upcoming years, we remain dedicated to implementing priority programs and strategies aligned with our 8-Point Socioeconomic Agenda and the Philippine Development Plan 2023-2028. Through these efforts, we anticipate fostering a favorable and resilient macroeconomic environment that will sustain our progress toward growth in the medium term.”
Basilio also noted that as the GDP remained steady, Gross National Income grew year-on-year by 6.2 percent in the fourth quarter of 2024, bringing the full-year 2024 growth to 7.6 percent.
“Moving forward, we will ensure that all the necessary support is in place to further boost our GDP growth and pursue our Agenda for Prosperity,” the Budget Chief ended.