In the first three quarters of 2024, the Philippine economy grew steadily at 5.8 percent, bolstered by a recovery in public consumption and construction investment, as well as export recovery. The strong labor market helped boost domestic consumption, despite the elevated underemployment rate. Inflation continued its declining trend from 2023, mainly driven by lower global commodity prices, the government’s inflation-containing measures, and tight monetary policy.

On the external front, the current account improved with a narrowing merchandise trade deficit. The net financial account inflows increased, and international reserve remained sufficient. As inflationary pressure eased, the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) delivered the first rate cut on August 15, signalling a calibrated shift to a less restrictive monetary policy stance.