Philippine Q4 GDP growth at 5.8%, below revised target but fastest since 2019

Philippine economic growth is expected to have accelerated to 5.8% in the fourth quarter of 2024, driven by strong consumer spending during the holiday season.

Despite this acceleration, full-year growth for 2024 is estimated at 5.7%, falling short of the government's revised target of 6-6.5%. This would still mark the fastest annual growth since 2019.

The slight uptick in inflation and stable labor market conditions supported private consumption, while increased government spending contributed to overall GDP growth.

However, challenges such as a widening trade deficit and weak electronics exports due to poor external conditions constrained economic performance.

Economists remain optimistic about the Philippines' economic outlook for 2025, anticipating continued recovery in household consumption and sustained infrastructure spending.