MANILA, Philippines — The Philippine economy expanded by 5.6 percent in 2024, fueled by strong performances in wholesale and retail trade, financial and insurance activities, and construction, according to the Philippine Statistics Authority (PSA). 

In the fourth quarter alone, the country’s Gross Domestic Product (GDP) grew by 5.2 percent compared to the same period in 2023.

Key economic drivers

The wholesale and retail trade sector, including the repair of motor vehicles and motorcycles, posted a 5.5 percent growth in the fourth quarter. 

Financial and insurance activities recorded an 8.5 percent increase, while construction rose by 7.8 percent. 

For the full year, wholesale and retail trade expanded by 5.6 percent, financial and insurance activities grew by 9.0 percent, and construction posted the highest growth at 10.3 percent, it said. 

Industry and services expand, agri declines

Among major economic sectors, industry and services continued to drive growth, posting increases of 4.4 percent and 6.7 percent, respectively, in the fourth quarter. However, agriculture, forestry, and fishing (AFF) contracted by 1.8 percent. 

The same trend was seen throughout 2024, with industry and services growing by 5.6 percent and 6.7 percent, while AFF declined by 1.6 percent.

Household, gov’t spending on the rise

Household spending increased by 4.7 percent in the fourth quarter, reflecting continued consumer demand. 

Government spending surged by 9.7 percent, supporting public programs and infrastructure projects. 

Investments, as measured by gross capital formation, rose by 4.1 percent, while exports of goods and services expanded by 3.15 percent and imports grew by 3.19 percent. 

For the full year, all major expenditure items recorded growth, with household consumption rising by 4.8 percent, government spending up by 7.2 percent, and investments growing by 7.5 percent.

Overseas income remains strong

The statistics bureau also noted that yhe Gross National Income (GNI) increased by 6.2 percent in the fourth quarter, bringing full-year growth to 7.6 percent. 

Income from overseas, measured by Net Primary Income from the Rest of the World, surged by 14.1 percent in the last quarter, resulting in a full-year increase of 26.1 percent, it said. 

This reflects the continued strength of remittances from overseas Filipino workers, a key driver of the Philippine economy.