The Philippine economy saw a robust 6.3 percent growth in the second quarter of 2024, according to the latest report from the Philippine Statistics Authority (PSA) on Thursday, August 8. This marks a significant acceleration from the 5.8 percent recorded in the first quarter, pushing the economy closer to the government’s full-year growth target.
The gross domestic product (GDP) growth, which reflects the total value of goods and services produced in the country, is the fastest since early 2023.
The surge was primarily fueled by a strong performance in the construction sector, which soared by 16 percent. Other key drivers included transportation and storage, which rose by 14.8 percent, along with substantial gains in other services (10 percent) and accommodation and food service activities (10.4 percent).
Breaking down the data by sectors, industry and services led the expansion with year-on-year increases of 7.7 percent and 6.8 percent, respectively. However, the agriculture, forestry, and fishing sector faced a setback, contracting by 2.3 percent during the same period.
Quarter-on-quarter, the economy grew by half a percent, with notable contributions from construction, information and communication, wholesale and retail trade, and motor vehicle and motorcycle repair services.
On the demand side, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan highlighted a remarkable 11.5 percent surge in total investments, largely driven by a 20.8 percent boost in construction activities. He attributed this growth to the swift implementation of infrastructure projects, paired with a strong pace in private sector construction efforts.
Household final consumption expenditure also played a crucial role in driving demand, showing a 4.6 percent increase year-on-year, according to the PSA.
“This solid performance brings our real GDP growth to 6.0 percent for the first half of the year, positioning us well to achieve our 6-7 percent growth target for 2024,” Balisacan said.
