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GDP Update: Growth slowdown adds case to BSP rate cuts
GDP growth is expected to pick up pace while BSP is seen to sustain policy easing
By Metrobank Research
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The Philippine economy grew below expectations in the third quarter (Q3), adding case for the Bangko Sentral ng Pilipinas (BSP) to sustain its monetary easing cycle.
Gross domestic product (GDP) grew 5.2% in Q3 2024 from a year ago, lower than Metrobank Research’s forecast of 5.5% and the 5.7% consensus estimate in a Bloomberg survey. Year-to-date GDP growth now stands at 5.8%, below the government’s target of 6.0%-7.0% for the full year.
Extreme weather conditions, which damaged agricultural crops, reduced fishing harvest, and moderated tourism activities, contributed to the lower-than-target print. Fishing bans in the West Philippine Sea and the African Swine Fever outbreak were added drags to growth.
Household consumption emerged as the biggest contributor to growth in Q3, expanding 5.1