📷National Economic and Development Authority Secretary Arsenio Balisacan
The Philippine economy grew slower in the third quarter of this year as storms affected the agricultural output of the country, the Philippine Statistics Authority said on Thursday, November 7.
Data from the PSA showed that the country’s gross domestic product (GDP), a key indicator of a country’s economic health and growth, grew 5.2 percent in the third quarter of this year.
For context, the economy grew by 6 percent in the third quarter of 2023 and achieved a solid expansion of 6.4 percent in the second quarter of 2024.
As a result, the average GDP growth for the first three quarters of 2024 stands at 5.8 percent, which is slightly below our target range of 6 percent to 7 percent for the year.
The PSA highlighted growth across multiple sectors, including wholesale and retail trade and motor vehicle and motorcycle repair (5.2 percent), financial and insurance activities (8.8 percent), and construction (9 percent).
Industry and Services recorded year-on-year growth rates of 5.0 percent and 6.3 percent, respectively, in the third quarter of 2024.
Household Final Consumption Expenditure was the primary driver of GDP growth, increasing by 5.1 percent, according to the PSA.
However, PSA said the decline in agriculture output mainly slowed the GDP growth in the third quarter of this year.
The agriculture, forestry, and fishing sectors shrank by 2.8 percent year-on-year.
In a press briefing, National Economic and Development Authority Secretary Arsenio Balisacan said the El Niño phenomenon initially affected the agriculture output early in the year, followed by a series of storms and heavy rains brought by the Southwest monsoon (habagat) that struck the country mid-year.
“On the production side, the slowdown was due to a contraction in agriculture and a moderation in growth in industry and services,” Balisacan said.
Crops experienced a 2.8 percent year-on-year decline due to the severe impacts of the El Niño phenomenon and multiple cyclones that hit the country, hampering production, according to the NEDA Secretary.
He also noted that fishing bans following the oil spill in Bataan in July slowed down aquaculture.
Additionally, Balisacan mentioned that an African Swine Flu outbreak in Batangas in August led to a drop in livestock production.
Tourism was impacted as weather disturbances restricted domestic travel, while public construction faced setbacks due to administrative delays and disruptions from severe weather, Balisacan said.
“The slowdown in tourism and leisure-related spending offset this, as weather disturbances limited domestic mobility,” Balisacan said.
He added that exports, particularly in electronics, also declined by 1 percent amid global inventory adjustments.
The NEDA chief stated that reducing inflation and interest rates could still allow the economy to reach the government’s growth target for the year.
Balisacan added that recovery efforts in typhoon-affected areas will boost economic activity.
“We expect these interventions to spur growth in private spending, particularly on big-ticket consumer items and investments in capital-intensive infrastructure,” Balisacan said. (TCSP)
