THE Philippines’ economy saw a modest growth of 5.2% in the third quarter of 2024, with household spending growth cooling to 5.1%, according to a statement by Albay 2nd District Representative Joey Salceda.
Salceda, an economic policy expert and chairman of the House Committee on Ways and Means, attributed the slowdown to higher inflation reducing consumers’ discretionary income, as well as lower-than-targeted government spending.
The latest figures indicate that government final consumption expenditure rose by only 5.0%, which Salceda noted as insufficient to sustain the economy’s growth trajectory.
He suggested that a significant catch-up in government spending would be essential in the final quarter of the year to help meet the country’s growth goals.
“The final quarter offers a recovery opportunity,” Salceda said, noting that the outlook hinges on “a government spending catch-up plan, maintaining inflation between 2-3% in November and December, increased remittances from Overseas Filipino Workers (OFWs), and a boost in goods exports,” which experienced a year-on-year decline in Q3.
To stimulate the economy in Q4, Salceda proposed that the government should expedite its disaster risk reduction and management spending.
Mobilizing resources for disaster preparedness and recovery, especially as the Philippines approaches peak storm season, would also stimulate economic activity.
President Ferdinand Marcos Jr. has already provided local governments affected by recent disasters with access to the National Calamity Fund, but Salceda urged additional government agencies to focus their low-utilization funds on aid for disaster-prone and affected areas.
While services continued to be a strong performer with a year-on-year growth rate of 6.3%, the agriculture sector saw a significant decline, dropping 2.8%.
Salceda highlighted concerns from livestock, poultry, and dairy producers, who reported that falling household demand pushed down producer prices, particularly in the meat sector.
He argued that the agricultural sector, which contributes a substantial share of the overall gross value added but receives minimal government funding, is in need of more robust support.
Looking to 2025, Salceda emphasized the importance of strategic investments and policy reforms, especially in agriculture, to drive more balanced growth across sectors and ensure the Philippines’ economic resilience amid shifting global and local economic conditions.
