July 17, 2024 - The Philippine economy has grown by more than 6 percent since President Ferdinand R. Marcos Jr. took office in 2022, exceeding the performance of most emerging economies in Southeast Asia.
Economic managers reported a strong average growth rate of 6.1 percent from the third quarter of 2022 to the first quarter of 2024. The first quarter of 2024 alone saw a 5.7 percent expansion, outperforming regional neighbors like Indonesia, Malaysia, Singapore, and Thailand.
This momentum is expected to continue, with both the International Monetary Fund (IMF) and the Asian Development Bank (ADB) projecting at least 6 percent growth for the Philippines in 2024 and 2025.
"Despite external challenges, we are on track to surpass most emerging economies," said the Development Budget Coordination Committee. They forecast a growth range of 6.0 to 7.0 percent in 2024, accelerating further to 6.5 to 7.5 percent in 2025.
Several factors are driving this positive outlook:
- Strong Domestic Demand: Household consumption, supported by low unemployment and overseas worker remittances, remains a key contributor to growth.
- Infrastructure Investments: Continued government spending on public infrastructure projects is boosting economic activity.
- Export Recovery: Merchandise exports, particularly electronics, are rebounding, while services exports like tourism and business process outsourcing stay healthy.
- Moderating Inflation: Inflation is expected to remain manageable, supporting household spending and investment.
However, the National Economic and Development Authority (NEDA) emphasizes the importance of long-term strategies for sustained growth.
"Developing our infrastructure and diversifying our growth drivers are crucial," said NEDA Secretary Arsenio Balisacan. He highlighted the role of the Philippine Development Plan (PDP) 2023-2028 in addressing infrastructure gaps and creating a more attractive environment for investment.
The Marcos administration is committed to achieving the 5 percent to 6 percent annual target for infrastructure spending. The "Build Better More" program, with its 185 flagship projects valued at PHP9.54 trillion (USD163 billion), is central to this vision.
Beyond infrastructure, Balisacan stressed the need to boost investments and enhance export performance, particularly in manufacturing and agribusiness.
The Philippines' economic outlook is promising. By addressing long-term challenges and capitalizing on current strengths, the country can solidify its position as a regional growth leader.