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MANILA, Philippines — The Philippines’ inventive economic system posted its slowest progress in three years in 2024 after excessive inflation and elevated rates of interest squeezed family and company budgets, subsequently crimping spending on inventive merchandise.
Preliminary information from the Philippine Statistics Authority (PSA) confirmed the dimensions of the inventive economic system, in peso phrases, had expanded by 8.7 % final yr to P1.94 trillion.
Excluding the pandemic-induced contraction in 2020, the most recent studying was the weakest tempo of growth since 2021—again when the inventive economic system had grown by 7.1 % after the world slowly reopened from lockdowns.
At its present dimension, inventive industries cornered 7.3 % of the nation’s P26.44-trillion gross home product (GDP) in 2024. That share to whole GDP was unchanged from 2023, figures confirmed.
READ: Philippine inventive economic system nears P2-trillion mark
However the total progress of the inventive economic system—which was stated to incorporate audio and audiovisual media, digital interactive items and providers, promoting, music, arts and conventional cultural expressions, amongst others—however translated to extra jobs.
Employment in that economic system had risen by 3.9 % in 2024 to 7.51 million, accounting for 15.4 % of whole employed individuals within the nation, the PSA reported.
Discretionary
John Paolo Rivera, senior analysis fellow at state-run assume tank Philippine Institute for Improvement Research (PIDS), stated excessive inflation and tight monetary situations might need strained family and enterprise spending on inventive merchandise that could be deemed as non-essential or discretionary.
“The expansion within the Philippine inventive economic system displays a postpandemic normalization because the sector transitions from a robust restoration part to a extra steady-state growth,” Rivera stated.
“The softer efficiency throughout a number of subsectors seemingly stems from weaker shopper and company spending amid excessive inflation and tighter budgets, particularly in areas like promoting, occasions and digital providers, that are delicate to financial cycles,” he added.
Dissecting the PSA’s report, the expansion of digital interactive items and repair actions had eased to 9.7 % in 2024 from 11.6 % earlier than, one of many greatest slowdowns among the many inventive industries.
There was additionally some weak spot within the promoting business, which had expanded at a slower tempo of 10 % from 12.8 % beforehand.
Artwork galleries, museums, ballrooms, conventions and commerce reveals had registered a weaker progress of 11.4 % in comparison with the 14.2 % growth within the previous yr.
‘Saturation’ impact
“The marked slowdown in digital interactive items may be attributed to saturation results following the pandemic increase in on-line content material and providers, whereas artwork galleries and events-related actions might have confronted lingering constraints in viewers spending, sponsorships, or venue availability,” PIDS’ Rivera stated.
Shifting ahead, Rivera stated the midterm elections might present a short-term increase to the inventive economic system by way of heightened spending on promoting, occasions, digital content material and design providers.
READ: Jobs ‘grasp plan’ to deal with creatives
However the PIDS economist stated extra work should be finished to maintain a robust progress.
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“Sustaining progress past 2025 would require investments in digital infrastructure, inventive abilities growth and stronger mental property protections to draw each home and worldwide demand,” Rivera stated.