In the fourth quarter of 2024, gross domestic product (GDP) expanded by 5.2 percent year-on-year, reflecting a moderate but steady pace of economic growth, the agency said on Thursday, Jan. 30, 2025.
Both readouts came in below expectations. The government was targeting a growth rate for the local economy of 6-6.5 percent for 2024, hopeful that strong holiday spending would perk up activity in the fourth quarter.
Key takeaways:
The services and industry sectors remained key drivers, with services expanding 6.7 percent and industry growing 4.4 percent in the fourth quarter. However, the agriculture, forestry, and fishing sector contracted by 1.8 percent, reflecting continued challenges in agricultural productivity.
For the full year, construction posted the highest growth at 10.3 percent, followed by financial and insurance activities at 9.0 percent, and wholesale and retail trade at 5.6 percent. These sectors helped offset sluggish performance in agriculture, which declined 1.6 percent over the year.
On the demand side, household final consumption expenditure rose by 4.8 percent in 2024, reflecting continued consumer spending. Government spending grew by 7.2 percent, while gross capital formation increased by 7.5 percent, signaling continued investment activities. Exports and imports grew by 3.4 percent and 4.3 percent, respectively, despite global economic headwinds.
Gross national income expanded by 7.6 percent in 2024, boosted by a 26.1 percent rise in net primary income from abroad, driven by strong remittances from overseas Filipino workers.
