Philippine economic growth targets have remained elusive since President Ferdinand Marcos Jr. took the helm in the past two years.

In a press conference in Quezon City on Thursday, Philippine Statistics Authority (PSA) Undersecretary Claire Dennis Mapa said gross domestic product (GDP) posted a year-on-year growth of 5.2 percent in the fourth quarter of previous year, bringing the 2024 full year economic growth to 5.6 percent.

It missed the 2024 growth goal of 6 to 6.5 percent, which was revised lower last December from 6 to 7 percent by the Development Budget Coordinating Committee.

It is the second year that the Philippine government missed its target after the economy grew 5.5 percent in 2023, below the goal of 6 to 7 percent.

In 2022, GDP rose 7.6 percent exceeding the target of 7.5 percent for that period.

National Economic and Development Authority (NEDA) Undersecretary Rosemarie Edillon said although full year growth for 2024 "falls short of our target of 6.0 to 6.5 percent, we are positioned as the third fastest-growing economy in the region, trailing Vietnam (7.5 percent) and China (5.4 percent) but outpacing Malaysia (4.8 percent)."

Edillon said the economic performance in 2024 was affected by "numerous setbacks like extreme weather events, geopolitical tensions, and subdued global demand" which are similar to the challenge encountered in 2023.

"This suggests that these conditions may represent the new normal. While some challenges affect the entire economy, others exert pressure on specific sectors," she said.

"Consequently, our economic performance in 2024 hinged on the impact of these factors on various sectors and whether we can mitigate the negative effects or enable a swift recovery," she added.

Edillon said the draft of Philippine Development Report 2024 presented to the President and the Cabinet last week noted that the government fell short of its economic growth, quality employment and food inflation target in previous year.

"In the PDR 2024, we noted that we fell short of our targets for the economic growth, although we still emerged as one of the fastest-growing economies in the region; quality employment, although we have achieved our target employment numbers; and food inflation, although it started to go down in the second half of 2024," she said.

Edillon said the government will focus on building resiliency as it seeks to meet growth targets despite the challenges it may face in 2025.

"To achieve resilient economic growth, we need to diversify our sources of growth. For inclusive quality employment, we must encourage more investments in sectors that require workers with higher-level skills and further develop an agile workforce. To keep food inflation low and stable, we need to anticipate potential shocks and continue to employ multi-pronged approaches," she said.

"Looking ahead to 2025, we want to regain our growth momentum driven by strategic investments and initiatives designed to strengthen resilience and lay the foundation for long-term, inclusive growth," she added. Robina Asido/DMS