The Philippines can still accomplish its 6-7% gross domestic product (GDP) growth aim this year, stated National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan on Friday.<\/p>\n
\u201cWe continue to be hopeful about the economic performance in the fourth quarter. Holiday expenditures, more stable prices of commodities, strong remittance flows, and a favorable labor market provide us with the assurance that our 6 to 7% growth target remains attainable,\u201d he remarked during a press briefing on Friday.<\/p>\n
Mr. Balisacan indicated that the GDP growth for the fourth quarter is likely to surpass that of the third quarter, in light of softening inflation and reduced interest rates.<\/p>\n
\u201cI believe that all these factors suggest that the fourth quarter may perform better than the third quarter,\u201d he stated.<\/p>\n
Mr. Balisacan noted that these \u201cfavorable factors\u201d may counterbalance the anticipated decline in agricultural production due to weather disruptions.<\/p>\n
In the third quarter, GDP rose by 5.2%, as adverse weather affected agricultural yields and hindered government spending. This was below the revised 6.4% in the second quarter and 6% a year ago.<\/p>\n
This also marked the slowest growth in five quarters, since the 4.3% increase in the second quarter of 2023.<\/p>\n
For the initial nine months, GDP growth averaged 5.8%. The economy must increase by 6.5% in the fourth quarter to meet the lower threshold of the government’s 6-7% goal for 2024.<\/p>\n
Mr. Balisacan stated that even if Philippine GDP registers an average of 5.9% to 6.1% for the entire year, this would still represent a \u201cvery commendable growth\u201d in comparison to many emerging markets.<\/p>\n
Looking ahead to 2025, Mr. Balisacan expressed that the economy will likely benefit from interest rate reductions made by the Bangko Sentral ng Pilipinas (BSP).<\/p>\n
Since initiating its easing strategy in August, the BSP has lowered borrowing costs by 50 basis points, setting the benchmark rate at 6%.<\/p>\n