Philippine economy continues to lead ASEAN with strong 6.3% Q2 GDP growth
Finance Secretary Ralph Recto said the Philippine economy is once again among the frontrunners in the ASEAN region, posting a strong year-on-year growth of 6.3 percent in the second quarter driven by robust construction and higher investments.
“We need to build more, build better, and build faster so that Filipinos can reap the benefits of these high-impact projects at the soonest possible time. They will not only produce more jobs but improve the overall quality of life of our people,” he said.
The Philippines’ second quarter growth surpassed Malaysia (5.8 percent), Indonesia (5 percent), and China (4.7 percent). Other countries in the region are expected to release their second quarter growth this month.
This brings year-to-date growth to 6 percent, well within the Development Budget Coordination Committee’s assumption (DBCC) of 6 percent to 7 percent for 2024.
The GDP expansion was driven by a significant increase at 11.5 percent in total investments. Construction posted a high growth of 16.1 percent boosted by both public and private construction activities.
Specifically, spending on public infrastructure projects posted a strong expansion of 21.8 percent due to the expedited roll-out of the Build Better More program, especially with the implementation of the Public-Private Partnership (PPP) Code.
Public spending in construction activities helped in ushering in private sector construction, which grew by 9.9 percent.
Meanwhile, household consumption posted a growth of 4.6 percent year-on-year, as Filipinos spent more on miscellaneous goods and services. This is supported by a healthy job market with historically low unemployment rate and consistent inflows of remittances from overseas Filipinos.
“We expect this to further improve for the rest of the year as the government is doing everything it can to keep inflation low and stable,” the Finance Chief said. DOF Information Management Service
