Philippine Economy Misses Growth Target Amidst Storms and Flooding
The Philippine economy expanded by 5.2% year-over-year in Q4'24, falling short of the government's target and the 5.5% median estimate. This performance brings full-year growth to 5.6%, below the adjusted 6%-6.5% target.
Natural calamities, particularly a damaging typhoon season in the second half, hampered economic activity, damaging crops and disrupting commerce.
Despite easing inflation, cautious policymakers have hinted at a slower pace of interest rate cuts in 2025 due to rising tariff risks and evolving US policies.
The peso rose slightly against the dollar after the GDP data, while the main stock index declined modestly.