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Economic growth

Philippine Economy Remains Resilient Under Marcos Administration

Strategic Insights

— 1 min read

The Philippine economy has demonstrated resilience, fueled by strong growth, easing inflation, and fiscal consolidation efforts under the Marcos administration. According to the Japan Credit Rating Agency (JCR), the country's economy is expected to sustain its momentum, posting a 5.7-percent gross domestic product (GDP) growth in 2024, driven by consumption and infrastructure spending. The national poverty rate has fallen to 15.5 percent in 2023, faster than government targets, and the fiscal deficit has narrowed to 5.7 percent of GDP from 6.2 percent in the previous year.

Key Takeaways:

  • The Philippine economy is expected to sustain a 5.7-percent gross domestic product (GDP) growth in 2024, driven by consumption and infrastructure spending.
  • Inflation has eased significantly, with the average rate hitting 1.7 percent in the first eight months of the year, down from 8.7 percent in 2023.
  • The national poverty rate fell to 15.5 percent in 2023, faster than government targets.
  • The fiscal deficit narrowed to 5.7 percent of GDP from 6.2 percent in the previous year.
  • The debt-to-GDP ratio stood at 60.7 percent at the end of 2024, and the fiscal soundness is expected to be sustained.
  • The country's strong external buffers, including foreign exchange reserves of $106.3 billion at the end of 2024, equivalent to 3.8 times short-term external debt.
  • Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. welcomed JCR's report, citing the BSP's continued implementation of policies that promote robust capitalization and sound risk management among banks.

Statistics:

  • 5.7-percent gross domestic product (GDP) growth in 2024, driven by consumption and infrastructure spending.
  • Inflation averaged 1.7 percent in the first eight months of the year, down from 8.7 percent in 2023.
  • National poverty rate fell to 15.5 percent in 2023, faster than government targets.
  • Fiscal deficit narrowed to 5.7 percent of GDP from 6.2 percent in the previous year.
  • Debt-to-GDP ratio stood at 60.7 percent at the end of 2024.
  • Foreign exchange reserves $106.3 billion at the end of 2024, equivalent to 3.8 times short-term external debt.
  • Central government's debt-to-GDP ratio.

Sources:

  • Japan Credit Rating Agency (JCR) Report
  • Bangko Sentral ng Pilipinas (BSP) Statement by Governor Eli Remolona Jr.

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