NCR economy grows by 5.6 percent in 2024

MANILA, Philippines — The economy of Metro Manila expanded at a faster pace in 2024, driven primarily by the growth in the services sector, according to the Philippine Statistics Authority (PSA).

Data from the PSA yesterday showed that the economic growth of the National Capital Region (NCR) was at 5.6 percent last year, higher than the 4.9 percent expansion in 2023.

Despite the faster expansion posted last year, NCR’s economic growth was slightly below the 5.7 percent gross domestic product (GDP) growth at the national level in 2024.

Of the major economic sectors, services accounted for the biggest share or 82.9 percent of NCR’s total regional GDP last year. The sector posted a 5.9 percent growth, faster than the 5.7 percent in 2023.

Industries that recorded the fastest growth in NCR were transportation and storage (9.4 percent); other services (9.2 percent); and human health and social work activities (8.9 percent).

The industry sector, which accounted for 17.1 percent of NCR’s GDP, posted a faster growth rate of four percent last year from 1.3 percent in 2023.

Meanwhile, agriculture, forestry and fishing contributed less than 0.1 percent of NCR’s economy. Growth in the sector slowed to 0.8 percent last year from 5.4 percent in 2023.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said in an email that the faster NCR GDP growth in 2024 may be partly attributed to the faster government spending, which registered a 9.9 percent growth compared to the national average of 7.3 percent.

He said this offset the slower increases in consumer spending and investments in Metro Manila compared to the national level.

Consumer spending in NCR posted a 4.1 percent growth last year, below the 4.9 percent expansion at the national level.

Investments in Metro Manila registered a 7.3 percent growth last year, also lower than the national average of 7.7 percent.

Ricafort said easing inflation and spending related to election preparations may have also supported the faster NCR growth last year.

NCR accounted for 31.2 percent of the country’s total GDP last year, the highest among regions.

This was followed by Calabarzon (Cavite-Laguna-Batangas-Rizal-Quezon), which accounted for 14.7 percent of the Philippines’ GDP last year and Central Luzon with the third biggest share at 11.1 percent.

In terms of growth rate, Central Visayas posted the fastest expansion of 7.3 percent last year.

Caraga placed second with a 6.9 percent growth, followed by Central Luzon, which expanded by 6.5 percent last year.

“These three regions exhibited higher growths than the national level growth rate of 5.7 percent,” the PSA said.

Other regions that posted growth rates faster than the national level were Davao Region (6.3 percent); Eastern Visayas (6.2 percent); Northern Mindanao (six percent); and the newly created Negros Island Region (5.9 percent).

Asked for an outlook for this year, Ricafort said “both NCR and nationwide GDP growth rates at around six percent or slightly below six percent would be possible for 2025.”

He said election-related spending in early 2025 could lead to faster NCR and nationwide economic or GDP growth for this year.

In addition, he said mild inflation could help improve consumer spending, which could lead to faster economic growth rates both for NCR and at the national level.

Inflation from January to March averaged 2.2 percent, within the government’s two to four percent target for the year.