Business · World News Bureau
Philippines economy slows to 2.1% growth in third quarter
The Philippine economy expanded at its slowest pace in recent quarters during the third period of 2024, as elevated inflation pressures continued to weigh on consumer spending and economic activity. The modest growth rate reflects ongoing challenges facing Southeast Asia's second-largest economy.
LSN World News ·
The Philippines' gross domestic product grew 2.1 percent year-on-year in the third quarter, marking a deceleration from previous periods as persistent inflation constrained domestic demand and business investment. The expansion underperformed regional peers and fell short of the central bank's growth forecasts, raising concerns about the sustainability of the nation's economic recovery following pandemic-related disruptions.
Inflationary pressures remained the primary headwind to economic expansion, limiting household purchasing power and dampening consumer confidence. Rising prices across essential goods and services, coupled with elevated interest rates implemented by the Bangko Sentral ng Pilipinas to combat price pressures, contributed to the slowdown in activity across key sectors including retail, manufacturing, and services.
The third-quarter result underscores the delicate balancing act facing Philippine policymakers, who must address inflation concerns while supporting economic growth. Analysts have flagged risks to the full-year growth outlook, particularly if inflation persists above target levels and global economic conditions deteriorate further.
Government officials have signaled their commitment to pursuing structural reforms and infrastructure investments to enhance productivity and long-term growth potential. However, near-term economic performance will likely remain constrained until price pressures ease and monetary policy conditions normalize.