5.2% growth not bad at all

A pragmatic assessment of the economic state came from government economists after the country posted a lower-than-expected 5.2 percent gross domestic product (GDP) expansion in the fourth quarter.

While the figure was a disappointment, the trajectory remains on the upside based on the quarter-on-quarter comparison, which is what most economists are looking at.

The indicator showed a 1.8 percent growth in the last quarter, according to National Statistician and Civil Registrar General Dennis Mapa.

Full-year 2024 growth was at 5.6 percent, up from 5.5 percent last year.

Agriculture remains one of the slower-growing major economic sectors. President Ferdinand Marcos Jr. recognized the need to prioritize agriculture, initially taking on the role of agriculture secretary at the start of his term before appointing industrialist Francisco P. Tiu Laurel Jr. as his successor.

The sector shrank by 1.8 percent in the fourth quarter and contracted by 1.6 percent for the full year. Industry and services posted growths of 5.6 percent and 6.7 percent, respectively, for the entire year.

The economy remains a top performer in the region but trails Vietnam, which reported a 7.5 percent surge, and China, turning in a 5.4 percent gain in the last quarter.

National Economic and Development Authority (NEDA) Undersecretary Rosemarie G. Edillon enumerated the challenges that the economy encountered last year that restricted its growth potential, most of which were beyond the control of economic planners.

The factors that restrained growth, according to Edillon, were extreme weather events, geopolitical tensions and subdued global demand.

She said that since these were the same problems that the country encountered, which held down the economy’s momentum, “these conditions may represent the new normal.”

This is where resiliency, which Filipinos are widely known for, can be put to valuable use.

“Beyond aiming for higher numbers, our focus is on building resilience,” according to the economic expert.

Focus on agriculture should be maintained as it is needed to overcome the worsening weather pattern.

Between late October and mid-November, six strong typhoons struck the country in succession.

These extreme weather conditions led to a 1.8 percent year-on-year contraction in the agriculture, forestry and fishery (AFF) sector in the fourth quarter.

AFF contributes around 8 percent to total economic output and employs about one-fourth of the workforce.

Disruptions in crop production, livestock and fisheries further compounded its vulnerabilities.

What was glaring last year was the need for storage facilities for farm products to mitigate the boom-and-bust cycle when bountiful harvests led to crops being disposed of due to ridiculously low prices, forcing reliance on importation during lean months or when a strong typhoon strikes.

The economic experts stressed the importance of sticking to the long-term plan.

The Philippine Development Report, or PDR 2024, was presented to the President and the Cabinet last week.

It provides a checklist of the administration’s achievements thus far based on the targets and identifies the humps that the economy encountered and how to move forward to attain our development targets.

Under PDR 2024, the missed targets were economic growth, although the economy still emerged as one of the fastest-growing in the region; quality employment, although target employment numbers were hit; and food inflation, although it started to go down in the second half of 2024.

The annual budget is aligned with the Philippine Development Plan targets, and the slowing growth should serve as a lesson to legislators about the need to be faithful to the long-term goals as determined by the economic team.

Shoving these critical projects aside to make way for pork barrel insertions spoils the growth momentum.