The Philippines' economic growth is projected to fall below the 6.0 percent target for 2024 due to the adverse impact of a series of typhoons that battered the country, particularly the agriculture sector.
Economic growth in the Philippines is likely to fall short of the target for 2024 due to significant damage inflicted by a series of storms on agriculture and operational disruptions across various industries. Cabinet officials expressed this concern on Friday, citing the impact of typhoons that ravaged Luzon from late October to mid-November.
Socioeconomic Planning Secretary Arsenio Balisacan stated that the fourth quarter of 2024 is projected to be weaker than anticipated, potentially hindering the achievement of the 6.0 percent full-year growth target. He attributed this to the substantial losses incurred by the agriculture sector, as well as the disruption to business operations caused by the typhoons.Balisacan estimated that farm output could have contracted by at least 2 percent in 2024 due to the adverse weather conditions. However, he remained optimistic that inflation would remain within the target range of 2.0 to 4.0 percent for the year. These projections align with the sentiments expressed by Finance Secretary Ralph Recto last week, who also acknowledged that the country likely missed its growth targets for 2024 due to the numerous typhoons. While he anticipated a stronger fourth-quarter performance compared to the disappointing 5.2 percent recorded in July-September, Recto believed it would be insufficient to raise the full-year average to the desired 6.0 to 6.5 percent range.Despite the challenges, officials remain hopeful for a positive economic outlook in 2025. Balisacan emphasized that the government is closely monitoring global uncertainties and is prepared to revise targets as circumstances warrant. He highlighted the resilience of the Philippine economy, noting that approximately three-fourths of its growth originates from within the country. Meanwhile, Budget Secretary Amenah Pangandaman stressed the importance of staying focused on achieving the government's economic targets, including a GDP growth rate of 6.0 to 8.0 percent, reducing the deficit-to-GDP ratio, and achieving upper middle-income status. She assured that the 2025 budget, despite facing criticisms over spending cuts, is undergoing a review to address any funding shortfalls. Pangandaman emphasized the need for close collaboration between the executive and legislative branches to ensure the successful implementation of government projects and programs
Economic Growth Philippines Typhoons Agriculture Inflation GDP Budget
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