Typhoons, drought wreck Philippine economic growth target

MANILA - The Philippine economy fell well short of its 2024 growth target, officials said on Jan 30, as deadly typhoons and drought dampened economic activity.

Gross domestic product ticked up slightly to 5.6 per cent compared with 5.5 per cent in 2023, the Philippine Statistics Authority said.

But that failed to approach the government’s target of 6 per cent to 6.5 per cent, Economic Planning Undersecretary Rosemarie Edillon told a news conference, blaming a dry spell in the early part of the year and six consecutive typhoons that pummelled the country in October and November.

“These extreme weather conditions led to a 1.8 per cent year-on-year contraction in the agriculture, forestry and fishery sector,” Dr Edillon said.

The succession of storms and typhoons also dampened tourism, the government agency said, even as industry and the services sector remained key growth drivers.

Scientists from the World Weather Attribution network concluded in a report in December 2024 that human-induced climate change had fuelled the rare string of typhoons that struck the Philippines, killing more than 170 people and causing hundreds of millions of dollars’ worth of damage.

The Philippines also topped the World Risk Report in 2024 of countries threatened by “extreme weather events”.

“It is clear then that the key to economic growth in the new normal is to build resilience and ensure adaptability to changing preferences,” Dr Edillon said. AFP