MANILA, Philippines – The Philippine economy accelerated its growth in the second quarter of 2024, reaching a robust 6.3% expansion compared to the revised 5.8% in the first quarter. This stronger-than-expected performance has the country well on its way to achieve its 2024 targets and transition to upper-middle income status by 2025.
According to the preliminary assessment by the country’s economic managers, the Philippines’ economic growth exceeded the 6.0% median forecast of private-sector analysts. On a seasonally adjusted quarter-on-quarter basis, the country’s GDP grew by 0.5% during the period.
The Q2 2024 growth also represents a significant uptick from the 4.3% expansion seen in the second quarter of 2023. With a projected 6.0% growth in the second half of the year, the Philippines is poised to hit its annual targets and make substantial progress towards becoming an upper-middle income economy by 2025.
“This robust economic performance underscores the resilience and dynamism of the Philippine economy, even in the face of global headwinds,” said the country’s chief economist. “We are confident that with the right policies and continued reform efforts, the Philippines can sustain this growth trajectory and achieve our development goals.”
The strong second-quarter growth was driven by broad-based improvements across various sectors, including services, industry, and agriculture. Household consumption remained strong, while investment and exports also contributed significantly to the overall expansion.
Economists say the Philippines’ economic growth has now outpaced most of its Asian neighbors that have already released their Q2 2024 data, making it the second fastest-growing economy in the region after Vietnam’s 6.9% expansion. Other countries’ Q2 2024 growth rates include Malaysia at 5.8%, Indonesia at 5.0%, China at 4.7%, and Singapore at 2.9%.