The Philippine economy saw its slowest growth in over a year during the third quarter, primarily due to extreme weather impacting agriculture, industry, and services. The gross domestic product (GDP) increased by 5.2% year on year in Q3, down from the previous quarter's 6.4% growth, as reported by the Philippine Statistics Authority.
This figure fell short of the anticipated 5.7% rise that analysts had predicted. Notably, the agriculture, forestry, and fishing sector experienced a decline of 2.8% compared to last year, while industry and services sectors managed moderate increases of 5% and 6.3%, respectively, as stated by PSA's undersecretary, Claire Dennis Mapa. In a press conference, National Economic and Development Authority Secretary Arsenio Balisacan attributed the agricultural downturn to "the impacts of the El Niño phenomenon during the planting season and the effects of seven typhoons, in addition to the Habagat, during the harvest season." He further elaborated that the oil spill incident in July, alongside adverse weather, negatively affected the fishing and aquaculture sectors, leading to temporary fishing bans and canceled trips.
Additionally, recent outbreaks of African Swine Fever contributed to a reduction in livestock production. Moreover, typhoons have also impacted the industry and services sectors by causing administrative delays and disrupting supply chains. Despite these obstacles, key sectors like construction, financial and insurance activities, and wholesale and retail trade proved to be growth drivers, with increases of 9%, 8.8%, and 5.2%, respectively. Despite the slower GDP growth, Balisacan remains optimistic about meeting the government's growth target of 6% to 7% for the year, bolstered by anticipated holiday spending in the fourth quarter.
"The economy needs to grow by at least 6.5% to meet the government's target for the last quarter 2024," Balisacan mentioned. "We remain optimistic that this growth target is attainable.".