The Philippines made significant progress in 2024 but must remain vigilant to address socioeconomic priorities and sustain transformation, according to the National Economic and Development Authority (NEDA).
During the presentation of the 2024 Philippine Development Report (PDR 2024) at the NEDA Board meeting on January 23, chaired by President Ferdinand R. Marcos Jr., the government pledged to sustain economic growth, maintain low inflation, strengthen fiscal foundations, and reduce poverty to single-digit levels, in line with the Philippine Development Plan (PDP) 2023-2028.
Two years into the PDP 2023-2028, the PDR 2024 highlights the government’s progress in advancing the President’s eight-point socioeconomic agenda. Key priorities include protecting purchasing power, reducing vulnerabilities, maintaining sound macroeconomic fundamentals, creating resilient jobs, fostering a level playing field, and ensuring public safety.
“Despite external and domestic challenges, the Philippine economy remained on a positive and robust growth trajectory. We achieved many of our targets and delivered tangible results,” said NEDA Secretary Arsenio M. Balisacan.
The economy grew by an average of 5.8% in the first three quarters of 2024, with all sectors surpassing pre-pandemic levels on the expenditures side. On the supply side, mining, quarrying, and real estate sectors are expected to recover further in 2025.
Inflation averaged 3.2% in 2024, within the target range of 2.0% to 4.0%. Food inflation fell to 4.5%, a notable improvement from 8.0% in 2023.
“While inflation has moderated, prices of key commodities remain elevated. Ensuring affordable and accessible food requires efficient markets and better-targeted programs for low-income Filipinos,” Balisacan said.
The labor market showed gains, with the unemployment rate averaging 4.3% in 2024, better than the 4.4% to 4.7% target range. Wage and salaried workers in private establishments rose to 50.7% in 2024 from 49.9% in 2023, while underemployment declined to 13.3% from 13.6%.
Poverty incidence dropped to 15.5% in 2023 from 18.1% in 2021, lifting approximately 2.4 million Filipinos above the poverty line.
“With robust labor market performance and inflation deceleration in 2024, we expect further poverty reduction when new data becomes available,” Balisacan noted.
He also emphasized the need to address external risks, such as geopolitical tensions, climate risks, and technological disruptions, while capitalizing on opportunities to protect the labor force and food security.
“We must recalibrate our strategies to respond to these trends. Our resolve to achieve our targets this year is stronger than ever,” Balisacan said.
For 2025, the government aims to reduce poverty incidence to 13.2% or lower, maintain economic growth at 6.0% to 8.0%, and keep inflation within 2.0% to 4.0%. The generation of high-quality jobs will remain a priority, targeting an unemployment rate below 5.1% and increasing the share of wage and salaried workers.
“To achieve these targets, we will diversify and develop new growth drivers, adopt new technologies, raise productivity, and collaborate meaningfully with stakeholders,” Balisacan added.
Following President Marcos’ veto of certain items in the 2025 General Appropriations Act, the administration assured the public that critical health, education, and infrastructure initiatives will remain fully funded and supported.
“The President’s directive is clear: the government will continue to support urgent development priorities, ensuring that public services are sustained and improved to drive economic growth and inclusion,” the NEDA chief affirmed.
The 2024 Philippine Development Report will be publicly accessible starting January 31, 2025.
