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MANILA, Philippines — The Philippines’ inventive financial 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 knowledge from the Philippine Statistics Authority (PSA) confirmed the dimensions of the inventive financial system, in peso phrases, had expanded by 8.7 p.c final yr to P1.94 trillion.
Excluding the pandemic-induced contraction in 2020, the newest studying was the weakest tempo of enlargement since 2021—again when the inventive financial system had grown by 7.1 p.c after the world slowly reopened from lockdowns.
At its present dimension, inventive industries cornered 7.3 p.c of the nation’s P26.44-trillion gross home product (GDP) in 2024. That share to complete GDP was unchanged from 2023, figures confirmed.
READ: Philippine inventive financial system nears P2-trillion mark
However the total progress of the inventive financial system—which was mentioned to incorporate audio and audiovisual media, digital interactive items and companies, promoting, music, arts and conventional cultural expressions, amongst others—however translated to extra jobs.
Employment in that financial system had risen by 3.9 p.c in 2024 to 7.51 million, accounting for 15.4 p.c of complete 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), mentioned excessive inflation and tight monetary situations may need strained family and enterprise spending on inventive merchandise that could be deemed as non-essential or discretionary.
“The expansion within the Philippine inventive financial system displays a postpandemic normalization because the sector transitions from a powerful restoration part to a extra steady-state enlargement,” Rivera mentioned.
“The softer efficiency throughout a number of subsectors seemingly stems from weaker client and company spending amid excessive inflation and tighter budgets, particularly in areas like promoting, occasions and digital companies, 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 p.c in 2024 from 11.6 p.c earlier than, one of many largest slowdowns among the many inventive industries.
There was additionally some weak spot within the promoting trade, which had expanded at a slower tempo of 10 p.c from 12.8 p.c beforehand.
Artwork galleries, museums, ballrooms, conventions and commerce reveals had registered a weaker progress of 11.4 p.c in comparison with the 14.2 p.c enlargement within the previous yr.
‘Saturation’ impact
“The marked slowdown in digital interactive items is also attributed to saturation results following the pandemic increase in on-line content material and companies, whereas artwork galleries and events-related actions might have confronted lingering constraints in viewers spending, sponsorships, or venue availability,” PIDS’ Rivera mentioned.
Shifting ahead, Rivera mentioned the midterm elections might present a short-term increase to the inventive financial system by way of heightened spending on promoting, occasions, digital content material and design companies.
READ: Jobs ‘grasp plan’ to give attention to creatives
However the PIDS economist mentioned extra work have to be carried out to maintain a powerful 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 mentioned.
