Today, we present a comprehensive overview of the economic landscape in the Philippines, focusing on key insights that are poised to influence your comprehension of the real estate and property sector in 2024. Delving into the forecasts and analyses put forth by economists at First Metro Investment Corp. (FMIC) and the University of Asia and Pacific (UA&P), it becomes apparent that significant strides are anticipated for the Philippines economy this year, as experts anticipate “faster gains.”
Accelerating Momentum in 2024:
According to the latest edition of The Market Call report, there’s a notable acceleration in the seasonally adjusted gross domestic product (GDP) and its components. Contrary to a slowdown, the fourth quarter reveals a surge, providing the momentum for what economists foresee as “faster gains” in the year ahead.
Driving Forces Behind Growth:
The recent surge in investment and household spending has been pivotal in driving growth, despite the backdrop of heightened interest rates and declining inflation. Economists have underscored the significant impact of these factors. Notably, the 5.6 % GDP growth over the past year, while marginally below government projections, lays a solid foundation for optimism as we look ahead to 2024.
Consumer Confidence and Spending:
With record-high employment and inflation returning to the central bank’s target, consumers are expected to gain confidence in the first quarter. This surge in consumer spending could act as a catalyst, stimulating growth and contributing to the overall economic trajectory. This positive outlook suggests that there may be an increase in consumer confidence, which is likely to contribute significantly to economic growth.
2024 Growth Expectations:
While the GDP growth may accelerate to approximately 6.0 percent this year, economists from FMIC and UA&P suggest a figure slightly below the government’s target range. Nonetheless, this aligns with the expectations of various analysts, indicating a robust growth trajectory. This insight is in line with professional analyses and provides valuable information for professionals tracking economic trends.
Inflation and External Challenges:
The average inflation rate last year was 6.0 percent, but there are signs of stabilization, with forecasts suggesting a potential settling at 3.9 percent in 2024. External factors such as crude oil prices and the Philippines’ trade deficit pose challenges that may impact the peso’s performance in the first half of this year.
Factors Influencing Inflation:
The average inflation rate last year was 6.0%, but there are signs of stabilization, with forecasts suggesting a potential settling at 3.9% in 2024. External factors such as crude oil prices and the Philippines’ trade deficit pose challenges that may impact the peso’s performance in the first half of this year.
As we approach 2024, the real estate and property sector in the Philippines presents both opportunities and potential challenges. The economic forecast indicates a dynamic landscape, requiring industry professionals to stay vigilant and adaptable to navigate evolving trends. Stay informed as we delve into the unfolding story of the Philippines’ real estate and property sector throughout this year.
